Methanex Issues Statement Regarding Shareholder Director Nominations
March 25 2019 - 7:04PM
Methanex Corporation (“Methanex” or the “Company”) (TSX:MX)
(NASDAQ:MEOH) confirms that it has received advance notice from
M&G Investment Management Limited (“M&G”) that it intends
to nominate four candidates to stand for election to the Methanex
Board of Directors at the Company’s upcoming annual general meeting
of shareholders on April 25, 2019. Additional information
regarding each of the nominees has been filed under the Company’s
profile on the System for Electronic Document Analysis and
Retrieval (SEDAR) at www.sedar.com.
Methanex is committed to acting in the best
interest of all shareholders and gives due consideration to
constructive recommendations for strategies or actions that have
the potential to create value. However, through an ongoing
private dialogue with M&G over the last two years, it is clear
M&G has developed a short-term focus on share buybacks.
Methanex has an established, successful track record of balanced
capital allocation over the long-term including investments to
drive growth in the business as well as returning excess cash to
shareholders through share buybacks and dividends.
Methanex’s Board of Directors’ recommendation
regarding directors has been made in the Company's Management
Information Circular which was filed on March 21, 2019.
Methanex’s director nominees consist of 11
highly qualified and experienced directors, 10 of whom are
independent, including the Chair, and four of whom have joined the
board since 2016. Our directors know Methanex well, are leaders in
their respective fields, and, with our share ownership
requirements, are aligned with the interest of shareholders.
A Track Record of Success
Methanex’s Board and management team have
established a strong track record of success and creating
significant returns for shareholders. Methanex has significantly
increased its production capacity while maintaining a strong
balance sheet and financial flexibility. Methanex has
consistently taken a balanced approach to capital allocation by
growing our business to enhance our leadership position in the
methanol industry and delivering on our commitment to return excess
cash to shareholders through our dividend and share buybacks.
Over the last five years we have returned $1.6 billion to
shareholders through our dividend and share buybacks in addition to
investing over $2 billion in attractive capital projects.
We are extremely disappointed in the approach
taken by M&G. M&G’s news release references numerous
misstatements, contradictions and factual inaccuracies which we
will address in the coming days.
Despite the unnecessary time and money that
M&G’s action will require, we remain focused on continuing to
deliver on our strategic plan and building long-term value for all
shareholders. We believe we are well positioned to meet our
financial commitments, pursue our growth opportunities and deliver
on our commitment to return excess cash to shareholders through
dividends and share repurchases.
FORWARD-LOOKING INFORMATION
WARNING
This news release contains certain
forward-looking statements with respect to us and our industry.
These statements relate to future events or our future performance.
All statements other than statements of historical fact are
forward-looking statements. Statements that include the word
"believe" or other comparable terminology and similar statements of
a future or forward-looking nature identify forward-looking
statements. More particularly and without limitation, any
statements regarding the following are forward-looking
statements:
- Methanex's ability to meet its
financial commitments and continue to return excess cash to
shareholders, and
- Methanex’s ability to pursue growth
opportunities
We believe that we have a reasonable basis for
making such forward-looking statements. The forward-looking
statements in this document are based on our experience, our
perception of trends, current conditions and expected future
developments as well as other factors. Certain material factors or
assumptions were applied in drawing the conclusions or making the
forecasts or projections that are included in these forward-looking
statements, including, without limitation, future expectations and
assumptions concerning the following:
- the supply of, demand for, and
price of methanol, methanol derivatives, natural gas, coal, oil and
oil derivatives,
- operating rates of our
facilities,
- operating costs including natural
gas feedstock and logistics costs, capital costs, tax rates, cash
flows, foreign exchange rates and interest rates, and
- global and regional economic
activity (including industrial production levels).
However, forward-looking statements, by their
nature, involve risks and uncertainties that could cause actual
results to differ materially from those contemplated by the
forward-looking statements. The risks and uncertainties primarily
include those attendant with producing and marketing methanol and
successfully carrying out major capital expenditure projects in
various jurisdictions, including without limitation:
- conditions in the methanol and
other industries including fluctuations in the supply, demand for
and price of methanol and its derivatives, including demand for
methanol for energy uses,
- the price of natural gas, coal, oil
and oil derivatives,
- our ability to obtain natural gas
feedstock on commercially acceptable terms to underpin current
operations and future growth opportunities,
- the ability to successfully carry
out corporate initiatives and strategies,
- actions of competitors, suppliers
and financial institutions,
- world-wide economic conditions,
and
- other risks described in our 2018
Annual Management's Discussion and Analysis and our Fourth Quarter
2018 Management's Discussion and Analysis.
Having in mind these and other factors,
investors and other readers are cautioned not to place undue
reliance on forward-looking statements. They are not a substitute
for the exercise of one's own due diligence and judgment. The
outcomes anticipated in forward-looking statements may not occur
and we do not undertake to update forward-looking statements except
as required by applicable securities laws.
For further information, contact:
Kim CampbellManager, Investor RelationsMethanex
Corporation604-661-2600 or Toll Free:
1-800-661-8851www.methanex.com
Ian RobertsonExecutive Vice President, Communication
StrategyKingsdale AdvisorsDirect: 416-867-2333Cell:
647-621-2646Email: irobertson@kingsdaleadvisors.com
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