Group Calls For Rejection Of Clublink Takeover Proposal

The Canadian Shareholder Advisory Group, an adhoc organization committed to protecting investor rights is calling for shareholders to reject the terms of the proposed merger agreement between Clublink Corporation and Tri-White Corporation.
By: Canadian Shareholder Advisory Group
 
June 1, 2009 - PRLog -- The Canadian Shareholder Advisory Group, an adhoc organization committed to protecting investor rights is calling for shareholders to reject the terms of the proposed merger agreement between Clublink Corporation and Tri-White Corporation.

Based on our analysis, the offer price for Clublink shares grossly undervalues the company and is financially damaging to minority shareholders.

The book value of Clublink shares is $9.70 and a fair liquidation value of the company would give a price of $14 per share. The current Tri-White offer values Clublink at only $7.15 per share. This represents a discount of almost $40 million, or 26% to the  conservative book value of Clublink shares.

Over the last 8 years Tri-White has increased it’s ownership in Clublink to over 72%. On June 1, 2007 Tri-White purchased 6,635,300 Clublink shares at $13.25 per share. Having amassed a controlling stake, Tri-White is now trying to use their power to buy out the remaining shareholders at a huge discount.

It should also be noted that Tri-White and Clublink are both controlled by their shared CEO, Mr. Rai Sahi who has a history of short changing average shareholders. Mr. Sahi has a controlling stake in both Tri-White and Clubblink and with the proposed merger is attempting to consolidate his control of the companies.

In order to defeat the takeover, approximately 2.5 million shares must be voted against the proposal. Our analysis suggests that there is a high probability that the takeover will be ultimately rejected by shareholders or, at minimum, the adjusted merger price will be increased significantly.

Shareholders interested in getting more information can view the website ClublinkTakeover.wordpress.com or contact Mario Rizzi directly at 514 967 9827
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