Shareholders Should Vote BLUE Proxy Today to Protect their Regular Monthly Dividend
TORONTO, ONTARIO--(Marketwire - April 17, 2012) - EnerCare Inc. (TSX:ECI) ("EnerCare") today responded to the proposals from Octavian Advisors, LP ("Octavian"), which would cripple EnerCare with debt and endanger the interests of EnerCare shareholders.
Octavian has proposed to load EnerCare with debt in order to finance a one-time special dividend, which would immediately enrich Octavian, but undermine EnerCare's prudently managed financial health. The Octavian dividend would result in an approximate 25% increase in EnerCare's Net Debt to EBITDA ratio and endanger EnerCare's strong corporate credit ratings.
"Once again, Octavian has shown that they have no understanding of EnerCare's business. Octavian's reckless proposal to force EnerCare to take on increased debt will undermine years of prudent management and hard work, jeopardizing future growth and regular monthly dividends for all shareholders," said Jim Pantelidis, Chair of the EnerCare Board of Directors.
"Having failed in its attempts at a quick sale of the entire business, Octavian is now pursuing a new trick: stack the Board, saddle EnerCare with additional debt, and jeopardize EnerCare's future," said Pantelidis. "Octavian's quick-sale agenda also includes the spin-off of EnerCare's successful sub-metering business. This is another example of Octavian's intention to disrupt EnerCare's sound business plan by seizing control of EnerCare for Octavian's own short-term gain."
In advance of the upcoming annual and special meeting of shareholders, Octavian has proposed to stack the EnerCare Board with four of its own nominees, while dismissing two experienced directors, to pursue Octavian's short-term objectives.
EnerCare's Board continues to provide all shareholders with high monthly dividends, while maximizing the value of shareholders' investment through organic growth and strategic acquisitions. Since its IPO, EnerCare has outperformed the broader market and provided strong returns to investors.
EnerCare's Board has demonstrated effective leadership, with a dividend yield higher than 90% of the companies currentl y included in the S&P / TSX Composite Index. EnerCare shareholders would lose their regular monthly dividend if Octavian seizes control of the Board.
PROTECT YOUR DIVIDEND - VOTE YOUR BLUE PROXY TODAY
Shareholders should call Kingsdale Shareholder Services toll-free at 1-888-518-6813 or call collect at 416-867-2272 for assistance in voting the BLUE proxy.
For more information, please go to: www.ProtectEnerCare.com.
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.
For more information about the upcoming April 30 annual and special meeting of shareholders, please visit www.protectenercare.com. You can also find more information about EnerCare on SEDAR at www.sedar.com, on our investor website at www.enercareinc.com or on our rentals and sub-metering business website at www.enercare.ca.
This news release contains certain forward-looking statements that involve various risks and uncertainties. The forward-looking information in this news release includes statements that reflect management's expectation regarding EnerCare'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 cannot assure investors that actual results will be consistent with this forward-looking information. All forward-looking information in this news release is made as of the date hereof. Except as required by applicable securities laws, EnerCare does not intend and does not assume any obligations to update or revise the forward-looking information, whether as a result of new information, future events or otherwise. A thorough discussion in respect of the material risks relating to the business and structure of EnerCare can be found in its current Annual Information Form, which is available on SEDAR at www.sedar.com.