EANS-Adhoc: CHRIST WATER TECHNOLOGY AG
GLV and Christ Water Technology
Announce the Recent Award of contracts Totalling CA$67 M (EUR45 M) in the
Seawater Desalination and Drinking Water Treatment Fields along with a Contract
Worth CA$5 M (EUR3 M) ...
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement.
Company Information
28.01.2010
Montreal, Canada, January 28, 2010 GLV Inc. ("GLV"; ticker symbols
GLV.A, GLV.B / TSX) and its Austria-based subsidiary Christ Water
Technology AG ("CWT"; ticker symbol CWT / Vienna Stock Exchange) are
pleased to announce that CWT has been recently awarded several large
contracts totalling over CA$67 M (EUR45 M) in North Africa and the
Middle East to supply complete technological solutions in the areas
of seawater desalination and drinking water treatment. This
development occurs two months after GLV´s acquisition of over 80% of
the outstanding shares of CWT, one of the key advantages of which was
to provide complementary technologies to those of GLV´s Water
Treatment Group (Eimco Water Technologies or "EWT") in several
high-potential markets, such as seawater desalination.Some of the new orders will be delivered over the next fiscal year ending March 31, 2011, but most will be completed in fiscal 2012. The largest, worth CA$35 M (EUR23 M), consists of the implementation of desalination and drinking water production plants in Northern Africa, and also includes a two-year facility operation contract. Richard Verreault, President and Chief Operating Officer of GLV, said that these parts of the world offer good potential for further contracts of this type, considering their demographic growth and specific needs for drinking water treatment. "In addition, the combination of CWT´s ultra-filtration, demineralization and process water recycling technologies, on the one hand, and EWT´s water intake screening solutions, on the other, will reinforce our positioning as a provider of complete solutions in this niche."
Management also announces a new order worth over CA$5 M (EUR3 M) from a global producer of semi-conductors, a field in which CWT has developed recognized expertise and a significant business base. "Being awarded this contract not only confirms GLV´s entry, through CWT, into a new market segment, but it also attests to an improvement in market conditions and investments in the microelectronics industry," added Mr. Verreault.
More than 88% of CWT´s Shares Acquired or Tendered as of Today
GLV´s management confirms that as of today, 88.14 % of CWT´s outstanding shares have either been purchased by GLV (86.5%), or tendered by CWT´s shareholders (1.64%). Pursuant to the terms of the voluntary takeover bid for CWT´s shares (the "Offer") launched by GLV in October 2009, CWT´s shareholders have until February 19, 2010 to tender their shares. Marc Barbeau, Executive Vice-President and Chief Financial Officer, indicated that the share purchase process is progressing as scheduled. "Given the percentage of shares tendered and purchased to date, we are confident that GLV will complete the purchase of CWT´s total share capital during the coming quarters."
The Combining of EWT and CWT´s Global Operations Is Progressing in Accordance with Management´s Expectations
Within the first week following the closing of the CWT acquisition, the officers of GLV and its Water Treatment Group visited all of CWT´s offices and met with all employees. A special committee comprised of key managers of EWT and CWT was set up to implement the combination plan of both companies´ respective global organizations. Thus far, the following main initiatives have already been taken:
CWT has divested the 49% interest it held in the Zeta Group, whose operations did not fit into GLV´s strategic focus.
Substantially all of CWT´s head office functions, previously carried-out in Switzerland and Austria, have been assumed by GLV´s head office in Montreal (Canada).
The Company has undertaken to restructure some of CWT´s business centres in North America and Europe in order to eliminate certain non-strategic operations. In addition, it has already initiated the process of combining CWT´s and EWT´s operations in China and Singapore to maximize the synergies.
Subsequent to its assessment of the assets and positioning of CWT´s "Food and Beverage" division, management decided to maintain these operations. "This CWT division has sound technologies and we see good potential to restructure it financially and increase its value within a reasonable timeframe of 12 to 24 months," Richard Verreault explained.
The Company is currently drawing up a global branding strategy to fully leverage the reputation and awareness of CWT´s and EWT´s various technologies, trademarks and business entities.
Finally, as planned, CWT´s balance sheet at the acquisition date has been restructured to ensure its financial health, solidity and compliance with the criteria in place at GLV, which entailed major adjustments to several assets and liabilities. CWT´s balance sheet position at the acquisition date resulting from these adjustments will be reflected in GLV´s balance sheet in the purchase equation. However, it should be noted that the aforementioned adjustments will be accounted for in the results of the public subsidiary CWT for its fourth quarter and fiscal year ended December 31, 2009.
Management is satisfied with the way the combination is progressing. In light of recent market developments, GLV is also confident that the CWT / EWT combination will provide the Water Treatment Group with broader and sustainable growth drivers and, global leadership over the medium and long term, as it will result in a more complete, stronger value-added technological portfolio, a better balanced positioning between the industrial and municipal segments, an increased presence in certain high-growth markets such as thermal power generation, seawater desalination, petrochemicals and microelectronics industries and a stronger international footprint, notably in Asia and Europe.
end of announcement euro adhoc
Further inquiry note:
GLV, Christ Water Technology AG
Marc Barbeau, CA
marc.barbeau@glv.com
Phone: +1 (514) 284-2224
Branche: Biotechnology
ISIN: AT0000499157
WKN: 675399
Index: WBI, ATX Prime
Börsen: Wien / official market