TORONTO, ONTARIO–(Marketwire – April 16, 2012) - Aastra Technologies Limited (“Aastra”) (TSX:AAH) today announced today that it has taken up and paid for 2,173,913 common shares at a purchase price of $23.00 per share (the “Purchase Price”) under its substantial issuer bid to repurchase up to $50 million of its common shares. The repurchased shares represent approximately 15.49% 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 is 11,860,072 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.
The Auction Tender process was oversubscribed. As a result, shareholders who made Auction Tenders at or below the Purchase Price had approximately 47.48% of their common shares purchased by Aastra under the bid. However, under the terms of the bid, odd lots submitted at or below the Purchase Price were purchased in their totality and adjustments were made to avoid the creation of fractional shares.
Shareholders who made Proportionate Tenders had approximately 15.49% of their common shares purchased by Aastra under the bid.
The ownership of common shares not purchased by Aastra under the bid will not be affected.
In accordance with settlement procedures, Computershare Investor Services Inc. commenced payment and settlement to registered shareholders today. 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.