Enterprise Group Announces Letter of Intent to Divest the Business of Calgary Tunnelling & Horizontal Augering
March 06 2018 - 8:30AM
Enterprise Group, Inc. (TSX:E) (the “
Company” or
“
Enterprise”) is pleased to announce that it has
entered into a non-binding letter of intent for the sale of the
assets of its trenchless solutions business unit, Calgary
Tunnelling & Horizontal Augering (“
CTHA”), to
a private arm’s length purchaser.
Pursuant to the terms of the letter of intent,
Enterprise proposes to sell all of the assets relating to the
business carried on by CTHA for total proceeds of approximately $21
million, subject to certain adjustments for inventory and working
capital. All proceeds from the transaction would be used to
reduce Enterprise’s debt. On completion of the transaction
the Company will be net debt free.
Enterprise expects to complete the transaction
on or about March 15. Completion of the transaction is subject to
negotiation of a definitive agreement, finalization of satisfactory
due diligence, obtaining third party consents and approvals and
other customary closing conditions.
Completion of the transaction allows the company
to pursue several attractive growth opportunities in the specialty
equipment rental space. Management intends to focus its
forward attention on the equipment rental sector.
For questions or additional information, please
contact:Leonard Jaroszuk, President & CEO, or Desmond
O’Kell, Senior Vice-President 780-418-4400
contact@enterprisegrp.ca
Forward Looking Information
Certain statements contained in this news
release constitute forward-looking information. These statements
relate to future events or the Company’s future performance. The
use of any of the words "could", "expect", "believe", "will",
"projected", "estimated" and similar expressions and statements
relating to matters that are not historical facts are intended to
identify forward-looking information and are based on the Company's
current belief or assumptions as to the outcome and timing of such
future events. In particular, this news release contains forward
looking information relating to the proposed sale of CTHA, the
terms and timing of such transaction and the use of proceeds
therefrom. These forward-looking statements are based on
assumptions and are subject to numerous risks and uncertainties,
certain of which are beyond the Company's control, including the
negotiation of a definitive agreement, obtaining all necessary
third party consents and approvals, satisfaction or waiver of
closing conditions, general economic conditions, industry
conditions and competitive factors. There is no assurance that the
proposed transaction will be completed on the terms set forth
herein or at all. Actual future results may differ materially. The
Company's Annual Information Form and other documents filed with
securities regulatory authorities (accessible through the SEDAR
website www.sedar.com) describe the risks, material assumptions and
other factors that could influence actual results and which are
incorporated herein by reference. The Company disclaims any
intention or obligation to publicly update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as may be expressly
required by applicable securities laws.
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