Danier Leather Announces Successful Completion of $10 Million Substantial Issuer Bid
TORONTO, ONTARIO--(Marketwire - Nov. 29, 2012) - Danier Leather Inc. (TSX:DL) ("Danier" or the "Corporation") announced today the final results of its "modified Dutch Auction" substantial issuer bid (the "Offer"), pursuant to which the Corporation offered to repurchase for cancellation up to Cdn$10 million in value of its subordinate voting shares (the "Shares") from shareholders for cash. The Offer expired at 7:00 p.m. (Toronto time) on November 28, 2012.
Shareholders had the opportunity under the Offer to tender Shares by electing an "auction tender" at a price of their choice between Cdn$12.55 and Cdn$13.30 per Share or, alternatively, by electing a "purchase price tender" at which they could sell their Shares at a purchase price determined by the Corporation pursuant to the Offer terms. At the expiry of the Offer, a total of 1,748,470 Shares were validly deposited and not withdrawn under the Offer. Pursuant to the terms of the Offer, the Corporation has determined the purchase price to be Cdn$12.70 per Share.
As the aggregate value of Shares deposited exceeds the Cdn$10 million maximum value of consideration payable by the Corporation under the Offer, the Corporation will repurchase for cancellation approximately 787,401 Shares, and a pro-ration factor of 0.9852 will apply to deposited Shares (except for odd lot deposits, which are not subject to pro-ration), such that shareholders who deposited Shares (other than odd lots) at or below the purchase price of Cdn$12.70 per Share will have approximately 98.52% of their deposited Shares repurchased for cancellation. The repurchased Shares represent approximately 23.01% of the total Shares issued and outstanding (on an undiluted basis) as of November 28, 2012 and, following the purchase and cancellation of these Shares, it is expected that approximately 2,635,172 Shares will remain issued and outstanding.
Payment and settlement of repurchased Shares will be effected on or about December 4, 2012 to registered shareholders by Computershare Investor Services Inc., the depositary under the Offer, in accordance with the settlement procedures described in the Corporation's offer to purchase and issuer bid circular dated October 23, 2012. Payment and settlement will be effected on or about December 5, 2012 to beneficial shareholders by CDS Clearing and Depository Services Inc. in accordance with their settlement procedures. Any Shares deposited but not purchased, including Shares invalidly deposited, will be returned promptly by the depositary to the depositing shareholder in accordance with such shareholder's instructions set out in the letter of transmittal (or, in the case of book-entry transfers, in accordance with the procedures established by CDS or DTC, as applicable).
The full details of the Offer are described in the Corporation's