The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

EnerCare Rejects Octavian's Short-Term Focus and Responds to Requisition

Wednesday, January 18, 2012

EnerCare Rejects Octavian's Short-Term Focus and Responds to Requisition17:26 EST Wednesday, January 18, 2012TORONTO, ONTARIO--(Marketwire - Jan. 18, 2012) - EnerCare Inc. ("EnerCare") (TSX:ECI) announced today that in response to the previously announced shareholder meeting requisition received from Octavian Advisors, LP ("Octavian") on December 30, 2011, it has called the requisitioned special shareholder meeting to coincide with EnerCare's previously called April 30 Annual Meeting of Shareholders. At the meeting, shareholders will be asked to consider resolutions: (i) to increase the number of directors of EnerCare to 10; and (ii) to add four directors nominated by Octavian. "Octavian is a New York-based hedge fund with no interest in the long-term future of EnerCare or its other shareholders. Their agenda has been clear from the outset, which is to force a sale of EnerCare. In my very first meeting with Octavian on May 18, 2010, they repeatedly insisted that we should sell EnerCare at $6.00 per share because this was the "new reality" for EnerCare", said James Pantelidis, Chairman of the Board of Directors of EnerCare. "At that price, a sale of the company would have denied shareholders a further $3.58/share in price appreciation and $1.08/share in dividends, or 88.9% in total return*". "The EnerCare Board continues to believe in our long term strategy to provide value to shareholders through dividends and capital appreciation, in the context of which we will exercise our fiduciary duty to explore all opportunities to maximize shareholder value. While we do not think that Octavian's requests are in the best interests of EnerCare or its shareholders, we believe that this is a matter that shareholders should decide", he added. The Special Meeting of Shareholders is scheduled for April 30, 2012 and will be held concurrently with EnerCare's previously scheduled annual meeting. The Board has fixed March 2, 2012 as the record date for the special meeting. EnerCare looks forward to providing shareholders with detailed proxy materials relating to the annual and special meetings in advance of the meetings.About EnerCare Inc. EnerCare owns a portfolio of approximately 1.2 million installed water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare also owns EnerCare Connections Inc., a leading sub-metering company, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada. Additional information regarding EnerCare is available on SEDAR at www.sedar.com or through EnerCare's website at http://investors.enercare.ca. Information on the sub-metering business is also available at www.enercareconnections.com. Forward-looking Information Certain statements in this news release are forward-looking statements, which reflect management's expectation regarding EnerCare's and EnerCare Solutions Inc.'s growth, results of operations, performance, business prospects and opportunities. Such forward-looking information reflects management's current beliefs and is based on information available to them and/or assumptions management believes are reasonable. Many factors could cause results to differ materially from the results discussed in the forward-looking information. Although the forward-looking information is based on what management believes to be reasonable assumptions, EnerCare and EnerCare Solutions Inc. cannot assure investors that actual results will be consistent with this forward-looking information. Except as required by applicable securities laws, neither EnerCare nor EnerCare Solutions Inc. intend and do not assume any obligation to update or revise the forward-looking information, whether as a result of new information, future events or otherwise. *Calculated as of the close of business on January 17, 2012 and assuming re-investment of dividends.FOR FURTHER INFORMATION PLEASE CONTACT: Karen ChodzickiKingsdale Communications Inc.416-867-2335