EDMONTON INVESTORS GROUP RESPONDS TO PURCHASE OFFER
/ Edmonton Oilers
As the public was made aware, on December 13, 2007 Rexall Sports Corp. made an offer to purchase the shares of individual shareholders in the Edmonton Investors Group Holdings Ltd., which owns the Edmonton Oilers.
The Board of the Edmonton Investors Group has met and formally responded to Rexall Sports with these questions about the offer:
• The willingness of Rexall Sports to execute a location agreement for the Oilers to remain in Edmonton, and under what conditions Rexall Sports would make such an agreement.
• If Rexall Sports Corp. is prepared to contribute $100 million to the construction of a new facility in Edmonton, as reported in the media, what conditions might apply – for example, will Rexall Sports expect an ownership interest in the new facility, or any additional control beyond the existing Licence agreement with Northlands? Will Rexall Sports require development on a site of its choice?
• Clarifications on the purchase price offered by Rexall Sports to shareholders.
• Verification of the payment structure and the financial qualification of Rexall Sports.
Bill Butler, Chairman of the Edmonton Investors Group, made this statement: “Our Board has full respect for the offer made by Rexall Sports. We feel it is essential that the process, in responding to this offer, be one which is transparent to every shareholder.
“Most important, we should never lose sight of what our group has accomplished since 1998. Whatever decisions we make should honour the spirit and commitment to Edmonton which first brought us together as shareholders.”
Butler indicated that the Board will make recommendations on the Rexall Sports offer, and alternatives to a purchase by Rexall Sports, at an information meeting of shareholders scheduled for January 21st.