Dissidents Offer No New Plan or Ideas, Says ATS
TSX: ATA
CAMBRIDGE, ON, Sept. 6 /CNW/ - ATS Automation Tooling Systems Inc.,
responding today to a Dissidents' Circular filed by two hedge funds --
Goodwood Inc. and Mason Capital Management, LLC -- said the dissidents have
not proposed any plans other than those already being expeditiously executed
by ATS management with the approval of the current Board of Directors.
"Goodwood and Mason have failed to put forward any new or substantive
ideas for enhancing ATS's value beyond those ATS is already implementing,"
said Larry Tapp, Chairman of the Board of ATS. "We believe a wholesale change
of the Board at this time is unwarranted, unnecessary and runs counter to the
best interests of ATS shareholders. It is a needless distraction that will
only disrupt and delay our ongoing - and increasingly successful - progress in
building shareholder value."
"The bottom line is that our plan is working," said ATS President and CEO
Ron Jutras. "We are building positive momentum operationally, strategically
and financially, as we move to extend our gains in our core automation
business under a new management team, complete the spin-out of Photowatt and
conclude the sale of PCG. We are moving as quickly as possible on the
execution of our plan. Investors should not permit these two hedge funds to
seize control of the Board in exchange for nothing more than empty promises
that they could move more quickly."
Mr. Jutras added, "The dissidents' circular is self-serving and
incomplete in key respects. We expect to have further comment on it shortly,
along with a further discussion of ATS's progress against the strategic plan
laid out in June."
The Board of Directors urges shareholders to stop the ill-conceived hedge
fund initiative and support ATS's value creation plan by discarding any
dissident proxies and voting FOR the reelection of ATS's current directors at
the company's Annual General Meeting, which will take place, as scheduled, on
Thursday, September 13, 2007. Proxies must be returned no later than
September 11, 2007 at 10:00 am Toronto time for votes 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.
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.
Forward Looking Statement
This news 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's 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: execution of ATS's value creation plan and extending its gains
in its core automation business, completing the spin-out of Photowatt and
concluding the sale of PCG. The risks and uncertainties that may affect
forward-looking statements include, among others: general market performance
and restructuring within the North American automotive market; the receipt of
all necessary approvals and advance tax ruling relating to the Spin Out; the
state of the capital markets; foreign currency and exchange risk; strength of
the Canadian dollar; performance of the market sectors that ATS serves; that
some or all of the trends towards automation that ATS believes are attractive
dissipate or do not result in increased demand for automation; risks
associated with operating and servicing customers in a foreign country; that
multinational companies withdraw from global manufacturing for business,
political, economic or other reasons; unforeseen problems with the
implementation of the ASG strategic initiatives or failure of those measures
to bring about improved performance at ASG; the success of ongoing operational
improvements at ASG; problems associated with the expansion of production
capability and adoption of new production processes at Photowatt; managing the
impact of supply shortages and higher prices for polysilicon; Photowatt's
ability to improve efficiencies of its solar modules produced using lower
grade polysilicon or refined metallurgical silicon; Photowatt's ability to
secure additional long-term polysilicon supply contracts; the reduction in
government incentives in Germany and its effect on Photowatt; inability to
advance collaborative development arrangements focused on increasing power
efficiencies of solar cells; political, labour or supplier disruptions in
manufacturing and supply of silicon; the ability of ATS to exit the remaining
PCG operations; and other risks detailed from time to time in ATS's filings
with Canadian provincial securities regulators. 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.
%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