ATS exercises option to repurchase and cancel 1.97 million
common shares with proceeds from life insurance policy
TSX: ATA
CAMBRIDGE, ON, April 12 /CNW/ - ATS Automation Tooling Systems Inc. today
announced that it is exercising an option to re-purchase certain common
shares held by 566226 Ontario Limited, a holding company controlled by the
estate of the late Mr. Klaus Woerner, past President and CEO of the
Corporation.
ATS will purchase for cancellation 1,974,723 shares from 566226 Ontario
Limited, representing 3.2% of ATS's total common shares outstanding as at
December 31, 2004. The purchase is taking place at a price of $12.66 per
share, being the "market price" of those shares as determined in accordance
with the option agreement made in 1998 and the regulations under the
Securities Act (Ontario). The total purchase price of $24,999,993.18 will be
funded by life insurance proceeds of $25 million received by the Corporation
under a life insurance policy that had been maintained since 1998 in respect
of Mr. Woerner and which was established in conjunction with the initiation of
the option agreement.
"We believe the purchase of these shares is an excellent investment,"
said Ron Jutras, ATS President and Chief Executive Officer. "At the same, the
cash proceeds from the life insurance policy allow ATS to complete this
transaction without impacting our strong balance sheet."
Corporate Description
ATS Automation Tooling Systems Inc. (www.atsautomation.com) is the
industry's leading designer and producer of turn-key automated manufacturing
and test systems, which are used primarily by multinational corporations
operating in a variety of industries including: automotive,
computer/electronics, healthcare, and consumer products. ATS is also an
emerging leader in the rapidly growing market for solar energy cells and
modules and makes precision components and subassemblies using its own
custom-built manufacturing systems, process knowledge and automation
technology. ATS employs approximately 4,000 people at 26 manufacturing
facilities in Canada, the United States, Europe and Asia-Pacific. The
Company's shares are traded on The Toronto Stock Exchange under the symbol
ATA.
Forward-Looking Statements
Certain forward looking statements may be made in this news release.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of ATS's
products, technologies, customer requirements and other risks detailed from
time to time in ATS's periodic reports filed with Canadian regulatory
authorities.
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For further information: Carl Galloway, Vice President, Treasurer, (519) 653-6500