Calian Adopts Shareholder Rights Plan

Thursday, December 12, 2019

Calian Adopts Shareholder Rights Plan

OTTAWA, Dec. 12, 2019 -- Calian Group Ltd. (TSX: CGY) today announced that it has adopted the 2020 Shareholder Rights Plan (the “Rights Plan”).  The Company’s prior 2010 Shareholder Rights Plan expired in 2019.  

The Rights Plan, which is effective immediately but is subject to shareholder approval, will help to better ensure that all shareholders are treated fairly and receive equal treatment in the face of an unsolicited take-over bid for the Company.  Shareholders will be asked to confirm the Rights Plan at the Annual and Special Meeting of Shareholders to be held on February 6, 2020 and the Rights Plan will need to be reconfirmed by shareholders every three years after that. If this confirmation is not received, the Rights Plan will terminate. 

At the close of business today, one right will be issued and attached to each common share of the Company outstanding at such time and a right will also automatically attach to each common share issued hereafter for as long as the Rights Plan remains in effect. The rights will automatically attach to the common shares and no further action will be required by shareholders.

The rights issued under the Rights Plan become exercisable only when a person, including any party related to it or acting jointly with it, acquires or announces its intention to acquire 20% or more of the Company's outstanding common shares without complying with the 'Permitted Bid' provisions of the Rights Plan. Subject to certain conditions set out in the Rights Plan, should such an acquisition occur, each right would, upon exercise, entitle a rights holder, other than the acquiring person and related persons, to purchase common shares of the Company at a substantial discount to the market price at the time. Certain holdings of common shares, such as positions held by investment managers, trust companies for managed accounts and pension plans will not trigger the Rights Plan unless the holders are participating in making a take-over bid for the Company. Under the Rights Plan, a Permitted Bid is a bid made to all shareholders that is open for not less than 105 days and satisfies certain other conditions set out in the Rights Plan.

The 2020 Shareholder Rights Plan was not adopted in response to, or in anticipation of, any specific effort to acquire control of the Company and the Company is not aware of any such pending or contemplated proposals.   The 2020 Shareholder Rights Plan is not aimed at blocking bids, but is designed to ensure that all shareholders are treated fairly and equally and to allow the Company an ability to properly evaluate any offer and maximize value for shareholders.

The form of Rights Plan adopted by the Company is consistent with the current practice and the forms of shareholder right plans adopted by other Canadian public companies. The Rights Plan has been conditionally approved by the Toronto Stock Exchange subject to ratification by shareholders as described above and certain other customary conditions.

A complete copy of the Rights Plan will be filed with Canadian Securities Administrators and will be available at www.sedar.com.

About Calian

Calian employs over 3,300 people in its delivery of diverse products and solutions for private sector, government and defence customers in North American and global markets. The Company’s diverse capabilities are delivered through four segments: Advanced Technologies, Health, Learning and Information Technology. The Advanced Technologies segment provides innovative products, technologies and manufacturing services and solutions for the space, communications, defence, nuclear, government and agriculture sectors. The Health segment manages a network of more than 1,800 health care professionals delivering primary care and occupational health services to public and private sector clients across Canada. Learning is a trusted provider of emergency management, consulting and specialized training services and solutions for the Canadian Armed Forces and clients in the defence, health, energy and other sectors. The Information Technology segment supports public- and private-sector customer requirements for subject matter expertise in the delivery of complex IT and cyber security solutions. Headquartered in Ottawa, the Company’s offices and projects span Canada and international markets.

For investor information, please visit our website at www.calian.com or contact us at [email protected]

Kevin Ford                                                  Patrick Houston                              Media inquiries: 

President and Chief Executive Officer       Chief Financial Officer                    Simon Doyle

613-599-8600                                             613-599-8600                                613-599-8600 x 2205

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