Canon Inc (CAJ) and Océ announced that they have reached conditional agreement to combine their printing activities through a fully self-funded, public cash offer by Canon for all the Shares of Océ.
Canon intends to acquire all the outstanding Shares of Océ through a fully self-funded cash offer consisting of EUR 8.60 in cash per ordinary Océ Share, representing a 70 % premium over Océ closing price on Friday 13 November 2009; a 137 % premium over Océ's average twelve months share price.
The cash consideration of the Offer is EUR 730 million, based on a 100% acceptance of Océ's ordinary shareholders.
The cash consideration for depository receipts for cumulative preference shares amounts to EUR 65 million. Canon intends to refinance short and long term debt of Océ, as needed. No further dividends are expected to be declared prior to the completion of this Offer.
Further, the integration of both Canon and Océ businesses will take place over the coming 3 years.
Océ and Canon do not expect that there shall be any material negative consequences as a result of the Offer for the existing employment level of Océ, excluding already announced personnel reductions.
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