Oxbow Carbon & Minerals Increases Offer Price to Purchase Business of Great Lakes Carbon Income Fund to C$13.50 per Unitadmin
Oxbow Carbon & Minerals Holdings, Inc. (Oxbow) announced that it has informed the Board of Trustees of Great Lakes Carbon Income Fund (the Fund) (TSX:GLC.UN – News) that it has modified its offer to purchase all assets of the Fund to increase the effective cash price per unit of the Fund from C$13.00 to C$13.50. Oxbow’s increased offer price is C$.0.25 higher than the amount of C$13.25 per unit that would be received by unitholders in the amended transaction proposed by Rain Commodities.
“Our increased offer price of $13.50 is clearly superior to the price of $13.25 proposed by Rain Commodities, and we are confident that the Board of Trustees of the Fund and the Fund’s unitholders will find our proposal to be a compelling one,” said William I. Koch, Chief Executive Officer of Oxbow.
Apart from improving the price offered, the proposal is substantially identical to the proposal announced by Oxbow on March 7, 2007. The proposal is not contingent upon due diligence, financing or upon Rain Commodities selling its 20 percent interest in GLC Carbon USA Inc., a subsidiary of Fund, to Oxbow. Oxbow’s acquisition of the assets of the Fund would require the approval of the Fund’s unitholders and could be completed in mid-April 2007.
Oxbow’s proposal expires at 5:00 p.m. (EDT) on March 13, 2007. If prior to such expiry, the Fund has publicly announced that Oxbow’s proposal is a superior proposal and that, but for Rain Commodities’ right to match, the Fund is prepared to enter into an acquisition agreement with Oxbow, and the Fund has given notice to Rain Commodities to that effect, then the expiry of the proposal will be extended until 12:01 a.m. (EDT) on March 21, 2007.
Oxbow Carbon & Minerals Holdings, Inc. is part of the Oxbow Group, a private energy company based in West Palm Beach, Florida. It is owned and operated by William I. Koch, the last American to successfully defend the America’s Cup. The company was founded by Koch in 1984. Under his leadership, the company has become the world’s largest marketer of petroleum coke, a by product of the oil refinery process. Petroleum coke is used in power generation; concrete kilns, sugar mills and aluminium manufacturing. The company trades in other carbon and industrial products such as coal, gypsum, bauxite, and clinker. Oxbow also owns one of the most productive underground coal mines in the nation, producing 6.5 million tons of super-compliant coal annually, and is developing an extensive natural gas reserve.
Oxbow Corporation, West Palm Beach Corporate Communications: Brad Goldstein, 561-697-4300 (Ext. 822) or
Source: Oxbow Carbon & Minerals Holdings, Inc.