Chemtrade Logistics Income Fund, Toronto, said Sept. 14 that on Sept. 6 it made a proposal to acquire Calgary-based Canexus Corp. for C$1.45 per common share in cash, which it said was an approximate 18 percent premium to the Sept. 13 closing price of Canexus common shares of $1.23.
On Sept. 12, Canexus rejected Chemtrade’s proposal without engaging in any discussions with Chemtrade, and subsequently announced its intention to complete a $75 million note offering on Sept. 13, 2016. Chemtrade said the note offering, if completed, includes terms that would negatively impact Canexus shareholder value on an acquisition of Canexus.
Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. It has four plants in Canada and two at one site in Brazil.