Falken Industries Ltd (OTCBB: FLKI) Confirms Receipt of Letter of Intent to Pursue Its Potential Acquisition at $ 1.50 Per Share
October 19 2010 - 4:00PM
Marketwired
Falken Industries Ltd (OTCBB: FLKI), a leading global manufacturer
whose product conceptions are best known under the brand Clean
Plus®, today acknowledged receipt of an unsolicited Letter of
Intent from Norex International indicating its interest in
acquiring a controlling interest in Falken Industries Ltd. at a
price of $ 1.50 per share. Norex claims to have reached a formal
assessment of FLKI and a final decision on proceeding with the
acquisition yesterday. Norex is a major global supplier to the
Distribution Network of Falken product conceptions. Norex claims in
its missive to anticipate the due diligence process to be completed
such that the acquisition would be finalized by the end of 1Q 2011.
Falken management by Manuel Garcia, Communications Officer stated
that a more thorough statement will be made regarding the complete
scope of this unexpected offer. Management was not prepared to
opine at this time on whether such a transaction would in its
collective opinion be in the long term best interest of
shareholders. "While the company is on the acquisition trail, it is
not a willing partner to being acquired" added Garcia.
Garcia continued: "We began our journey to access potential
diversification efforts two years ago with the announcement that we
had created a new strategic planning unit recruiting Director Myron
Young, an experienced retired executive in mergers and acquisitions
to counsel Falken Management tasked with investigating potential
diversification strategies, notably acquisitions of small
manufacturers."
While Falken has often been the subject of rumors in the
professional press that it was or would be targeted by behemoths
owning Clean Plus® competitors, the company has always indicated
its unwillingness to accept the consequences of acquisition which
it viewed as a certain loss of independence, creativity, risk
taking, and flexibility. Acquirers would manifestly enhance their
distribution presence, manufacturing and innovative faculties at a
price of a fiercely creative and dogmatic independent
management.
The economic realities of the day however, coupled to the
Falken's continued success, innovative reputation and huge pipeline
have highlighted the company's attractiveness to would be
acquirers.
"This unsolicited offer to potentially acquire the company marks
an unexpected first on this front." said Garcia.
About Norex International (France) Inc.:
Norex is a leading manufacturer of consumer, industrial and
professional chemical and wipe products. It is a significant global
producer of the Falken Clean Plus® product conceptions. The Company
is a privately held concern.
About Falken Industries Ltd:
Falken Industries Ltd (OTCBB: FLKI) is a diversified industrial
conglomerate that operates in Chemicals, Wet Wipe and Biodegradable
Technology. Falken Industries Ltd is the concept behind more than
160 products distributed through a network of global platforms and
the recipient of trade awards for innovations, biodegradability and
environmental and health quality standards.
SAFE HARBOR STATEMENT: This news release contains
"forward-looking statements" made pursuant to the safe harbor
provisions of the 1995 Private Securities Litigation Reform Act.
"Forward-looking statements" describe future expectations, plans,
results, or strategies and are generally preceded by words such as
"future," "plan" or "planned," "will" or "should," "expected,"
"anticipates," "draft," "eventually" or "projected." Such
statements are subject to risks and uncertainties that could cause
future circumstances, events, or results to differ materially from
those projected in the forward-looking statements, including the
risks that our products may not achieve customer acceptance or
perform as intended, that we may be unable to obtain necessary
financing to continue operations and development, and other risks.
You should consider these factors in evaluating the forward-looking
statements included herein, and not place undue reliance on such
statements.
Contacts: Falken Industries Ltd Manuel Garcia Communications
Officer +1609 357 0316 mgarciafaure@falkenltd.com
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