Cascal N.V. Commences Legal Action and Seeks Injunctive Relief and Damages in Response to Proposed Sembcorp Tender OfferBy Cascal N.v., PRNE
Thursday, April 29, 2010
LONDON, April 30, 2010 - — Company Reiterates Rejection of Sembcorp Proposal as Inadequate and
— Company Considering Additional Legal Action
Cascal N.V. (NYSE: HOO) today commenced an action in the United States
District Court for the Southern District of New York claiming violations of
U.S. securities laws and breach of confidentiality agreements. The lawsuit
seeks injunctive relief and recovery of damages.
"The structure of the proposed Sembcorp tender is coercive and seeks to
diminish the rights of shareholders to participate in Cascal's growth and
share value appreciation. The offering price is inadequate and under the
proposed terms would result in an illiquid market for our publicly traded
common shares. Accordingly, the Sembcorp bid is unacceptable," said Michael
Wager, spokesman for Cascal.
As indicated in a previous communication (April 26, 2010), the Board of
Directors of Cascal rejects Sembcorp's proposed tender offer as inadequate,
coercive and not in the best interest of all shareholders.
Mr. Wager concluded, "Cascal's continued independence is in the best
interest of shareholders and Cascal intends to vigorously defend this
position. To assist us in these efforts, we have retained Janney Montgomery
Scott LLC, one of the leading investment banking and advisory firms, as our
About Cascal N.V.
Cascal provides water and wastewater services to its customers in eight
countries: the United Kingdom, South Africa, Indonesia, China, Chile, Panama,
Antigua and The Philippines. Cascal's customers are predominantly homes and
businesses representing a total population of approximately 4.7 million.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION LEGEND:
SECURITY HOLDERS SHOULD READ CASCAL N.V.'S SOLICITATION/RECOMMENDATION
STATEMENT WHEN IT IS AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.
INVESTORS MAY OBTAIN THE RECOMMENDATION AND OTHER FILED DOCUMENTS FREE OF
CHARGE AT THE COMMISSION'S WEB SITE (www.sec.gov ) AS WELL AS DIRECTLY
FROM CASCAL N.V. BY CONTACTING JEFFREY GOLDBERGER, KCSA STRATEGIC
COMMUNICATIONS, 880 THIRD AVENUE, NEW YORK, NEW YORK 10022, +1-212-896-1249,
Learn more at www.cascal.co.uk
This release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are not guarantees of future performance. There are important
factors, many of which are outside of our control, that could cause actual
results to differ materially from those expressed or implied by such
forward-looking statements including: general economic business conditions,
unfavorable weather conditions, housing and population growth trends, changes
in energy prices and taxes, fluctuations with currency exchange rates,
changes in regulations or regulatory treatment, changes in environmental
compliance and water quality requirements, availability and the cost of
capital, the success of growth initiatives, acquisitions and our ability to
successfully integrate acquired companies and other factors discussed in our
filings with the Securities and Exchange Commission, including under Risk
Factors in our Form 20-F for the fiscal year ended March 31, 2009, filed with
the SEC on July 1,2009. We do not undertake and have no obligation to
publicly update or revise any forward-looking statement.
Investor Contacts: Media Contact: KCSA Strategic Communications KCSA Strategic Communications Jeffrey Goldberger / Marybeth Csaby Lewis Goldberg +1-212-896-1249 / +1-212-896-1236 +1-212-896-1216 email@example.com / firstname.lastname@example.org email@example.com
Investor Contacts: Jeffrey Goldberger, +1-212-896-1249, jgoldberger at kcsa.com, or Marybeth Csaby, +1-212-896-1236, mcsaby at kcsa.com both of KCSA Strategic Communications; Media Contact: Lewis Goldberg, KCSA Strategic Communications, +1-212-896-1216, lgoldberg at kcsa.com
Tags: April 30, Cascal N.V., London, United Kingdom