TORONTO, ONTARIO–(Marketwire – April 10, 2012) - Aastra Technologies Limited (“Aastra”) – (TSX:AAH) announced the preliminary results of its modified Dutch auction-type substantial issuer bid to repurchase up to $50 million of its common shares, which expired at 5:00 p.m. (EST) today.
In accordance with the terms of the bid, Aastra expects to take up approximately 2.17 million common shares at a purchase price of $23.00 per share, representing approximately 15.5% of the common shares currently outstanding on an undiluted basis prior to giving effect to the bid. After giving effect to the repurchases under the bid, the number of common shares outstanding would amount to approximately 11.86 million common shares on an undiluted basis.
Shareholders had the opportunity under the terms of the bid to tender common shares until 5:00 p.m. EST on April 10, 2012 by electing an Auction Tender at a price of their choice between $21.00 and $23.00 per share or, alternatively, by electing a Proportionate Tender which would enable them to maintain their proportionate share ownership after the completion of the bid.
Under the terms of the bid, approximately 3.17 million common shares were validly tendered to the bid and not withdrawn pursuant to Auction Tenders, of which 1.51 million common shares are expected to be taken up and purchased in accordance with the bid. Since the bid was oversubscribed, shareholders who tendered common shares pursuant to Auction Tenders will have the number of common shares purchased prorated following the final results of the bid. Aastra expects that shareholders who made Auction Tenders at $23.00 or below will have approximately 47.5% of their common shares purchased by Aastra under the bid.
In addition, Aastra expects to take up and purchase approximately 0.66 million common shares for shareholders who tendered common shares pursuant to Proportionate Tenders.
Upon take up and payment of the common shares repurchased, Aastra will release the final results, including the proration factor.
The full details of the substantial issuer bid are described in the offer to purchase and circular dated February 22, 2012, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which were filed and are available on SEDAR at www.sedar.com.
Payment and settlement will be effected to registered shareholders by Computershare Investor Services Inc. in accordance with settlement procedures commencing on or about April 16, 2012. Payment and settlement will be effected to beneficial shareholders by CDS Clearing and Depository Services Inc. in accordance with settlement procedures commencing on or about April 16, 2012.
Important Income Tax Information for Shareholders
As described in the Offer to Purchase and Issuer Bid Circular describing the bid that was mailed to shareholders, Aastra is hereby designating the entire amount of the deemed dividend arising from its purchase of common shares under the bid as an “eligible dividend” for purposes of the enhanced dividend tax credit pursuant to subsection 89(14) of the Income Tax Act (Canada) and any relevant provincial legislation of comparable effect. This notice meets the requirements of the Income Tax Act (Canada). Please contact your tax advisor if you have any questions with regard to the designation of eligible dividends.
More at http://www.aastra.com.