Chariot enters 67-cent sale deal with China Sci-Tech

2010-03-01 10:38 ET - News Release

Mr. Ulli Rath reports

CHARIOT RESOURCES LIMITED ENTERS INTO ARRANGEMENT AGREEMENT WITH CHINA SCI-TECH HOLDINGS LIMITED

Chariot Resources Ltd. has entered into an arrangement agreement with China Sci-Tech Holdings Ltd., pursuant to which China Sci-Tech has agreed to acquire through an indirect, wholly owned subsidiary, by way of a court-approved plan of arrangement, all of the issued and outstanding common shares of Chariot at a price of 67 cents in cash per common share.

The consideration payable under the arrangement represents a premium of approximately 52 per cent based on the volume-weighted average price of Chariot's common shares over the 20 trading days prior to Feb. 22, 2010, the date on which Chariot announced that it was in exclusive negotiations with a third party with respect to a potential transaction, and a premium of approximately 38 per cent to the closing market price of Chariot's common shares on Feb. 19, 2010, the last trading day preceding that announcement. The consideration payable under the arrangement also represents a premium of approximately 54 per cent over the closing market price of Chariot's common shares on Sept. 3, 2009, the last trading day preceding Chariot's annual shareholders meeting at which Chariot announced that it was reviewing the timetable for launching a formal sale process.