Canada Bread Also Announces Expected Closing Date of Grupo Bimbo
Transaction
TORONTO, May 13, 2014 /CNW/ - Canada Bread Company, Limited (CBY: TSX)
("Canada Bread" or the "Company") announced that Grupo Bimbo, S.A.B. de
C.V. ("Grupo Bimbo") has received Investment Canada Act approval in
connection with the previously announced plan of arrangement between a
wholly-owned subsidiary of Grupo Bimbo and Canada Bread (the
"Arrangement"). The transaction has previously received shareholder
approval and clearance under the Competition Act (Canada) and the Hart-Scott-Rodino Act (USA). No further regulatory or shareholder approvals are required in
order for the transaction to close. Grupo Bimbo and Canada Bread have
agreed that subject to the satisfaction of the remaining customary
conditions to closing, the Arrangement will be completed on May 23,
2014.
Under the terms of the Arrangement, as previously disclosed, a
wholly-owned subsidiary of Grupo Bimbo will acquire each common share
of Canada Bread for $72.00 per share in cash and, provided the
transaction closes on May 23, 2014, a dividend will be deemed to have
been declared in the amount of $0.437 per share (being $0.75 per share,
pro-rated for the actual number of days elapsed in the second quarter
up to and including the closing date of the transaction). This dividend
will be payable at the effective time of the Arrangement to holders of
record of Canada Bread common shares immediately prior to the effective
time of the Arrangement. Unless indicated otherwise by the Company in
writing on or before the time the dividend is paid, this dividend will
be considered an Eligible Dividend for the purposes of the "Enhanced
Dividend Tax Credit System".
About Canada Bread
Canada Bread is a leading manufacturer and marketer of value-added flour
based products, including fresh bread, rolls, bagels and frozen
partially baked or par-baked breads and bagels. Canada Bread employs
approximately 5,400 people at its bakery operations throughout Canada
and in the United States and United Kingdom. Canada Bread is 90% owned
by Maple Leaf Foods Inc. and its common shares are listed on the
Toronto Stock Exchange under the ticker symbol CBY.
About Grupo Bimbo
Grupo Bimbo is one of the largest baking companies in the world in terms
of production and sales volume. As the market leader in the Americas,
Grupo Bimbo has 144 plants and more than 1,600 distribution centers
strategically located in 19 countries throughout the Americas, Europe
and Asia. Its main product lines include sliced bread, buns, cookies,
snack cakes, English muffins, bagels, pre-packaged foods, tortillas,
salted snacks and confectionery products, among others. Grupo Bimbo
produces over 10,000 products and has one of the most extensive direct
distribution networks in the world, with more than 52,000 routes and
more than 123,000 employees. Grupo Bimbo's shares have traded on the
Mexican Stock Exchange since 1980 under the ticker symbol BIMBO.
Forward Looking Statements
This document may contain "forward-looking information" within the
meaning of applicable securities law. Such statements include, but are
not limited to, statements with respect to the expected closing date of
the Arrangement. There can be no assurances that any transaction will
be completed on this date or at all. These statements are not
guarantees of future events and involve assumptions and risks and
uncertainties that are difficult to predict. Actual results may differ
materially from those expressed, implied or forecasted in such
forward-looking information. Canada Bread does not intend to, and
Canada Bread disclaims any obligation to, update any forward-looking
information, whether as a result of new information, future events or
otherwise, except as required by law.
SOURCE Canada Bread Company, Limited
