The saga comes to a close!!Way to go Eira, the deal will finally be done and hopefully we can all move on to bigger and better things.
In a fairness opinion also delivered orally on December 17, Sprott concluded that the consideration offered by Stornoway under the amalgamation agreement is fair, from a financial point of view, to Ashton's shareholders other than Stornoway, its associates and its affiliates. The conclusions and determinations of Sprott are subject to the limitations, qualifications, assumptions and exceptions described in the written valuation and fairness opinion that will be appended to the Information Circular (the "Valuation and Fairness Opinion"), including those that are summarized below.
Following a detailed review of the terms of the proposed transaction, Ashton's Board of Directors has unanimously concluded that the consideration offered to shareholders pursuant to the transaction is fair, from a financial point of view, to the Corporation's shareholders, other than Stornoway, and that the amalgamation is in the best interests of the Corporation. In reaching its conclusion, the Board considered all of the factors deemed relevant, including the recommendations of the Independent Committee, Sprott's two formal valuations and fairness opinion and the other considerations that will be described under the heading "Reasons for Recommendation" in the Information Circular. Accordingly, the Board of Directors has unanimously recommended that Ashton's shareholders vote in favour of the transaction.
Notwithstanding the approval of the Board of Directors, the amalgamation is subject to a number of further conditions. They include the absence of any material adverse change to either Ashton or Stornoway and the approval of not less than sixty-six and two-thirds per cent of the Corporation's shares that are voted in person or by proxy at the January 15 meeting.
The Corporation has been advised that Stornoway is entitled to vote the shares it acquired as a result of the take-over bid in favour of the amalgamation and understands that Stornoway intends to do so. Accordingly, the Corporation anticipates that the transaction will be approved and will therefore take effect on or about January 16, 2007. At that time, the Corporation will become a wholly owned subsidiary of Stornoway and the common shares of Ashton will thereafter cease to trade on the Toronto Stock Exchange.