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Polaris Announces Filing of Shareholder Meeting Materials in Connection With Special Meeting to Consider Acquisition by Vulcan

September 15, 2017

VANCOUVER, British Columbia - Polaris Materials Corporation (TSX:PLS) (the “Company” or “Polaris”), today announced that it has filed its Management Information Circular (the “Circular”) and related proxy materials on SEDAR and on its website (www.polarismaterials.com), in advance of the Company’s special meeting of securityholders to be held on October 20, 2017 (the “Special Meeting”). The purpose of the Special Meeting is to seek approval of the proposed plan of arrangement (the “Arrangement”) with Vulcan Materials Company (“Vulcan”), which was previously announced on August 27, 2017.

Polaris entered into a definitive arrangement agreement (the “Arrangement Agreement”) with Vulcan and an indirect wholly-owned subsidiary of Vulcan in respect of the Arrangement which provides for the purchase by such Vulcan indirect subsidiary of all issued and outstanding common shares of Polaris (the “Polaris Shares”) for a cash price of C$2.79 per share as well as certain payments for certain options and deferred share units of Polaris. If approved, the Arrangement is expected to occur in late October 2017, subject to customary closing conditions, following which time the Polaris Shares are anticipated to be delisted from the Toronto Stock Exchange.

Holders of Polaris Shares of record as of September 7, 2017, as well as holders of options and deferred units of Polaris (the “Affected Securityholders”), will receive notice of and be entitled to vote at the Special Meeting. The Arrangement will require the approval at the Special Meeting of 66 2/3% of all votes cast by holders of Polaris Shares, 66 2/3% of all votes cast by the Affected Securityholders voting as a single class and a majority of all votes cast by the shareholders of Polaris after excluding votes of any persons whose votes must be excluded in accordance with Multilateral Instrument 61-101.

Highlights of the Arrangement Include

  • The Consideration of $2.79 per Polaris Share represents a 191% premium to Polaris' closing share price of $0.96 on August 25, 2017, the final trading day prior to announcing the Arrangement, and a 194% premium to the volume weighted average price of Polaris Shares over the 10 trading days prior to August 25, 2017;
  • The Consideration is all cash, which provides certainty of value, and is not subject to the risks associated with the business of Polaris;
  • The Consideration is the result of the completion of a formal sale process, including soliciting interest from five strategic acquirers, that resulted in proposals from three parties, from which the Arrangement with the Purchaser emerged as the preferred transaction. The Board of Directors of the Company believes that the Consideration represents the highest consideration reasonably attainable;
  • The terms of the Arrangement are the result of a comprehensive negotiation process, undertaken with the oversight and participation of the independent Special Committee of Polaris and its legal counsel and financial advisors, and the terms of the Arrangement are fair in the judgment of the Special Committee; and
  • The Board of Directors of the Company believes that the likelihood of the completion of the Arrangement is reasonable and is not subject to any financing condition.

Securityholder Questions and Voting Information

Polaris’ Board of Directors unanimously recommends that Affected Securityholders vote in favour of the Arrangement. Securityholders who have questions regarding the Arrangement or require assistance with voting may contact the Proxy Solicitation Agent below:

Laurel Hill Advisory Group
North American Toll Free: 1-877-452-7184
International: +1-416-304-0211
By Email: assistance@laurelhill.com

Special Meeting Details

The Special Meeting will be held on October 20, 2017 at 10:00AM (Vancouver time) at the offices of Fasken Martineau DuMoulin LLP, Suite 2900, 550 Burrard Street, Vancouver, BC, V6C 0A3.

Polaris will provide further information with respect to the timing of closing of the Arrangement and the delisting of Polaris Shares from the TSX as updates become available.

About Polaris Materials Corporation:

Polaris Materials Corporation is engaged in the development and operation of construction aggregate quarries in Canada to supply distribution facilities in the United States through coastal shipping. The Company’s active construction aggregate interests consist of its Orca Sand and Gravel Quarry in British Columbia and two associated receiving terminals in Richmond and Long Beach, California. The Company also owns the Black Bear Project located in close proximity to the Orca Quarry, and a controlling interest in the Eagle Rock Quarry Project, located on the coast of central Vancouver Island.

Vulcan Materials Company:

Vulcan Materials Company, a member of the S&P 500 index with headquarters in Birmingham, Alabama, is the United States' largest producer of construction aggregates, including crushed stone, sand and gravel, and a major producer of other construction materials. For additional information about Vulcan, go to www.vulcanmaterials.com.

For further information, please contact:
Ken Palko
President & CEO
Polaris Materials Corporation
Tel: (604) 915-5000 Ext. 103

Nicholas Van Dyk
Vice President, Investor Relations and Corporate Development
Polaris Materials Corporation
Tel: (604) 915-5000 Ext. 104

Cautionary Note Regarding Forward Looking Statements

This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. These statements and information appear in this document and include estimates, forecasts, information and statements as to management's expectations with respect to, among other things, the completion of the Arrangement, receipt of all approvals, including from the British Columbia Supreme Court and the Affected Securityholders, necessary to complete the Arrangement, timing of the completion of the Arrangement, the delisting of the Polaris Shares and the holding of the Special Meeting. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's continuous disclosure documents which are filed with Canadian regulators on SEDAR (www.sedar.com), including in the circular to be sent to the Company's securityholders in advance of the Special Meeting, under the heading “Risk Factors Relating to the Arrangement” and under the heading “Risk Factors” in the Company’s Annual Information Form. Such factors include, amongst others, the receipt of all necessary approvals to complete the Arrangement, the timing of the Special Meeting, the receipt of any superior proposals, and the completion of all conditions to the Arrangement. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise, except as required by applicable law. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.