ATS Automation Tooling Systems Inc.(ATA.TO) announced it will launch an IPO for its Photowatt solar division.
The new subsidiary will be named Photowatt Technologies and is expected to include the company’s investments in Photowatt International (in France) and in Spheral Solar Power.
“An IPO of Photowatt Technologies is the principal mandate approved by our Board of Directors,” said Ron Jutras, ATS President and Chief Executive Officer. “For that reason, we continue to aggressively prepare Photowatt Technologies for an IPO. However, at the same time, the Board has stated clearly that it is open to considering alternative transactions during this preparatory period. I believe this is a wise strategy that is in the best interests of our shareholders.”
An offering of Photowatt Technologies shares is expected to commence in the third, or potentially the fourth quarter of calendar 2006 and ATS intends to retain both Canadian and U.S. underwriters.
“Looking forward, we have much to accomplish in a very short time, but I believe a fall launch is realistic given the legal and accounting requirements associated with separating our solar assets into a new subsidiary,” said Mr. Jutras. “This timetable takes into account a complex corporate reorganization, related tax and accounting activities, and applicable securities commission reviews.”
“With today’s announcement, we have a clear financing plan for Photowatt Technologies and a solid strategy to enable our shareholders to realize the value of this part of our Company.”