ATS Responds to Goodwood/Mason announcement
TSX: ATA
CAMBRIDGE, ON, Sept. 4 /CNW/ - ATS Automation Tooling Systems Inc.
responded to the announcement made earlier today by two hedge funds, Goodwood
Inc. and Mason Capital Management LLC, stating their intention to propose and
vote for an alternate slate of directors at ATS's upcoming Annual General
Meeting.
Ron Jutras, ATS President and Chief Executive Officer said, "We regret
that Goodwood and Mason Capital have chosen this course of action. We have
engaged both firms in regular discussions over the past several months
regarding the Company's strategic direction, and they have not only expressed
support for the plan we are now executing but have received $2.3 million in
fees for backstopping our recent rights offering. We share their desire to
move forward as rapidly as possible, but we fail to see how a disruptive proxy
contest will help us achieve that goal. Accordingly, we urge shareholders to
vote for the slate of directors included in the Management Information
Circular and to support the company as we work to create and deliver value to
our shareholders."
In June, ATS announced a three part strategic plan to make ATS a highly
focused pure automation systems company. This plan includes developing its
world-leading Automation Systems Group (ASG) operations, its core business;
strengthening Photowatt's financial capacity and silicon supplies through a
$110 million rights offering; and, pursuing strategic alternatives for its
Precision Components Group (PCG), including a divestiture.
Since then, the Company has completed the rights offering; retained
Scotia Capital Inc. to assist in identifying and evaluating alternatives for
its PCG operations; announced plans to distribute Photowatt shares to ATS
shareholders; recorded an increase in new automation systems bookings and
order backlog for the first quarter of 2007 as well as improved operating
results at ASG Cambridge and Ohio; strengthened its management team with a
number of key hires; and earlier today, announced that it has secured a fourth
long-term silicon supply contract for Photowatt.
ATS recommends that all shareholders vote their management proxy in
favour of the slate of directors as listed in the Management Information
Circular. Proxies must be returned no later than September 11, 2007 at 10:00am
Toronto time for your vote to count. A copy of ATS's current Annual Report and
Management Information Circular for the September 13, 2007 meeting can be
found on SEDAR at www.sedar.com, and at ATS's website at
www.atsautomation.com. Requests for a hard copy of the Annual Report or
Management Information Circular can also be made to Georgeson. For more
information call Georgeson, ATS's proxy solicitor toll free at 1-888-605-7636.
ATS will comment on further information provided by Goodwood and Mason
once it has been released.
About ATS
ATS Automation Tooling Systems Inc. provides innovative, custom designed,
built and installed manufacturing solutions to many of the world's most
successful companies. Founded in 1978, ATS uses its industry-leading knowledge
and global capabilities to serve the sophisticated automation systems' needs
of multinational customers in industries such as healthcare,
computer/electronics, automotive and consumer products. It also leverages its
many years of repetitive manufacturing experience and skills to fulfill the
specialized repetitive equipment manufacturing requirements of customers.
Through its Photowatt solar business, ATS participates in the growing solar
energy industry and through its precision components business it produces, in
high volume, precision components and subassemblies. ATS employs approximately
3,500 people at 24 manufacturing facilities in Canada, the United States,
Europe, southeast Asia and China. The Company's shares are traded on the
Toronto Stock Exchange under the symbol ATA. Visit the Company's website at
www.atsautomation.com.
%SEDAR: 00002017E
For further information: Investors: Carl Galloway, Vice President and Treasurer or Gerry Beard, Vice President and Chief Financial Officer, (519) 653-6500; Media: Josh Pekarsky, Longview Communications, (604) 694-6030; Alan Bayless, Longview Communications, (604) 694-6035