ATS announces funding strategy for Solar Group assets
TSX: ATA
CAMBRIDGE, ON, March 13 /CNW/ - ATS Automation Tooling Systems Inc. today
announced that its Board of Directors has approved a funding strategy for its
Solar Group.
Following a thorough review of the strategic alternatives available for
the Solar Group, the Board has decided to pursue an Initial Public Offering of
the common shares of a new subsidiary to be formed to hold the assets of the
ATS Solar Group. The new subsidiary will be named Photowatt Technologies and
is expected to include the company's investments in Photowatt International
(in France) and in Spheral Solar Power (SSP).
"An IPO of Photowatt Technologies is the principal mandate approved by
our Board of Directors," said Ron Jutras, ATS President and Chief Executive
Officer. "For that reason, we continue to aggressively prepare Photowatt
Technologies for an IPO. However, at the same time, the Board has stated
clearly that it is open to considering alternative transactions during this
preparatory period. I believe this is a wise strategy that is in the best
interests of our shareholders."
An offering of Photowatt Technologies shares is expected to commence in
the third, or potentially the fourth quarter of calendar 2006 and ATS intends
to retain both Canadian and U.S. underwriters.
"Looking forward, we have much to accomplish in a very short time, but I
believe a fall launch is realistic given the legal and accounting requirements
associated with separating our solar assets into a new subsidiary," said
Mr. Jutras. "This timetable takes into account a complex corporate
reorganization, related tax and accounting activities, and applicable
securities commission reviews."
"In the meantime, our operational objective for Photowatt Technologies
this year is to continue to pursue opportunities in conventional solar
technology through Photowatt International in France and overcome the
significant challenges and risks associated with proving out the commercial
manufacturability of the new SSP products," said Mr. Jutras. "With today's
announcement, we have a clear financing plan for Photowatt Technologies and a
solid strategy to enable our shareholders to realize the value of this part of
our Company."
About ATS
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: healthcare,
computer/electronics, automotive, and consumer products. ATS is also an
emerging leader in the rapidly growing market for solar energy cells and
modules. The Company also makes precision components and subassemblies using
its own custom-built manufacturing systems, process knowledge and automation
technology. ATS employs approximately 3,900 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.
Note to Readers
This press release contains certain statements that constitute
forward-looking information within the meaning of applicable securities laws
("forward-looking statements"). Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of ATS, or developments in ATS' business
or in its industry, to differ materially from the anticipated results,
performance, achievements or developments expressed or implied by such
forward-looking statements. Forward-looking statements include all disclosure
regarding possible events, conditions or results of operations that is based
on assumptions about future economic conditions and courses of action.
Forward-looking statements may also include, without limitation, any statement
relating to future events, conditions or circumstances. ATS cautions you not
to place undue reliance upon any such forward-looking statements, which speak
only as of the date they are made. Forward-looking statements relate to, among
other things, the pursuit and timing of an initial public offering of a new
subsidiary to hold the assets of ATS' Solar Group, the completion of the
related corporate reorganization to establish this subsidiary, the retention
of Canadian and U.S. underwriters in connection with the proposed offering,
the pursuit of opportunities through Photowatt, proving out the commercial
manufacturability of Spheral Solar Power (SSP) and the consideration of
alternative transactions. The risks and uncertainties that may affect
forward-looking statements include, among others, general capital markets
conditions, the performance of other public companies in the solar energy
sector, changes in the market that negatively impact the demand for investment
in the solar energy sector, unanticipated delays in completing the corporate
reorganization, tax costs associated with the reorganization, the risk of
non-recovery of investments and other technical, temporal, and financial risks
involved in developing and commercializing SSP technology on a cost-effective
basis, the cost and availability of silicon and other raw materials and
certain specialized manufacturing tools and fixtures used in the production of
Solar Group's products, the extent of market demand for solar products such as
those developed by the Solar Group, the availability of government subsidies
for solar products, the development of superior or alternative technologies to
those developed by ATS, the success of competitors with greater capital and
resources in exploiting their technology and marketing their products, the
Solar Group's ability to successfully develop its products and customer
relationships, and other risks detailed from time to time in ATS' filings with
Canadian provincial securities regulators, including ATS' Annual Report and
Annual Information Form for the fiscal year ended March 31, 2005.
Forward-looking statements are based on management's current plans, estimates,
projections, beliefs and opinions, and ATS does not undertake any obligation
to update forward-looking statements should assumptions related to these
plans, estimates, projections, beliefs and opinions change.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy common shares.
%SEDAR: 00002017E
For further information: Carl Galloway, Vice President and Treasurer; Gerry Beard, Vice President and Chief Financial Officer, (519) 653-6500