CALGARY, April 30 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN;
KEY.DB) ("Keyera") announced today that it has adopted a Unitholder rights
plan ("Rights Plan") effective April 30, 2007.
The Rights Plan was adopted by the Board of Directors to provide fair
treatment for all Unitholders, and to provide Keyera's Board of Directors and
Unitholders with sufficient time to explore and develop alternatives for
maximizing Unitholder value, in the event of a take-over bid for the Fund or
other acquisition of control of the Fund. Keyera is not adopting the Rights
Plan in response to any specific proposal to acquire control of the Fund.
The Rights Plan encourages a potential acquirer to proceed either by way
of a Permitted Bid (as defined in the Rights Agreement), which requires the
take-over bid to satisfy certain minimum standards designed to promote
fairness, or with the concurrence of the Board. Permitted Bids must be made by
way of a take-over circular and remain open for acceptance for 60 days. The
Rights Plan is similar to plans adopted by other Canadian public issuers.
Under the Rights Plan, rights have been issued and distributed to all
holders of outstanding units of the Fund as of April 30, 2007. Rights will
trade with and cannot be separated from the units until after the commencement
of a take-over bid for the Fund or an acquisition of a significant interest in
the Fund. In the event of a take-over bid or an acquisition of a significant
interest in the Fund that does not meet the requirements of a Permitted Bid,
or is not made with the concurrence of the Board, the rights entitle
Unitholders, other than those who are making the take-over bid, to purchase
additional Keyera units at a 50% discount to market value at the time of
exercise.
The Rights Agreement can be obtained on SEDAR (www.sedar.com) or Keyera's
website (www.keyera.com). The Rights Plan has received conditional acceptance
from the TSX and must be approved by Unitholders within six months.
Unitholders will be asked to approve the Rights Plan at Keyera's Annual and
Special Meeting of Unitholders on June 6, 2007 at 9:30 a.m. (MDT). The meeting
will be held in the Kensington Room, Marriott Hotel, 110 - 9th Avenue SE,
Calgary, Alberta. If approved, the Rights Plan will be in effect until June 6,
2010 unless it is extended with Unitholder approval. If not approved, the
rights will be redeemed in accordance with the terms of the Rights Plan.
About Keyera Facilities Income Fund
Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB) operates one of the
largest natural gas midstream businesses in Canada. Its business consists of
natural gas gathering and processing as well as the processing,
transportation, storage and marketing of natural gas liquids (NGLs) and crude
oil midstream activities.
Keyera's gas processing plants and associated facilities are
strategically located in the west central and foothills natural gas production
areas of the Western Canadian Sedimentary Basin. Its NGL and crude oil
infrastructure includes pipelines, terminals and processing and storage
facilities in Edmonton and Fort Saskatchewan, Alberta, a major North American
NGL hub. Keyera markets propane, butane and condensate to customers in Canada
and the United States.
This document contains forward-looking statements that involve known and
unknown risks and uncertainties, many of which are beyond Keyera's control.
The forward-looking statements are based on management's current expectations
and assumptions relating to Keyera's business and the environment in which it
operates. As the results or events predicted or implied in these
forward-looking statements depend upon future events, actual results or events
may differ materially from those predicted. Some of the factors which could
cause actual results or events to differ materially include the ability of
Keyera to successfully implement strategic initiatives, whether such
initiatives yield the expected benefits, operating and other costs, future
operating results and the components of those results, fluctuations in the
demand for natural gas, NGLs and crude oil, the activities of producers,
competitors and others, the weather, overall economic conditions and other
known or unknown factors. There can be no assurance that the results or
developments anticipated by Keyera will be realized or that they will have the
expected consequences for or effects on Keyera. For additional information on
these and other factors, see Keyera's public filings on www.sedar.com. Unless
otherwise required by applicable laws, Keyera does not intend to publicly
update or revise forward-looking statements, whether as a result of new
information, future events or otherwise.
%SEDAR: 00019203E
