Business
Clarke Inc. announces the close of the sale of its Freight Transportation Business and the results of its debenture amendment process
HALIFAX , Jan. 6, 2014 /CNW/ - Clarke Inc. (" Clarke ") (TSX: CKI, CKI.DB.A) is pleased ...
About this update from Clarke Inc.
[{"type":"text","content":"\n\n\nHALIFAX, Jan. 6, 2014 /CNW/ - Clarke Inc. (\"Clarke\") (TSX: CKI, CKI.DB.A) is pleased to announce the close of the sale of\n its truckload, less-than-truckload and freight logistics businesses\n (the \"Freight Transport Business\") to Transforce Inc. (\"Transforce\") as previously announced on October 31, 2013. Clarke received total\n net sales proceeds of approximately $100.5 million. Clarke estimates\n that it will recognize a gain on the sale of $63-$68 million, which\n will be reflected in Clarke's financial statements for the first\n quarter ended March 31, 2014. This will result in an increase in book\n value of over $3.55/share.\n\n\nGeorge Armoyan, Chief Executive Officer of Clarke, stated: \"The value of\n many of Clarke's assets is not properly reflected in our book value or\n share price and this sale shows that we remain committed to engaging in\n transactions that unlock this value. In the last few months, we have\n exited several investments generating significant cash proceeds and\n realized gains. These transactions will also make our financial\n statements less complex and easier for investors to understand. We look\n forward to continuing to generate positive investment results and\n increasing Clarke's intrinsic value.\"\n\n\nFollowing the close of this transaction, Clarke continues to own its\n Commercial Tanks and Home Heating segment, its Investment segment and\n the ferry and container shipping units within its current Freight\n Transportation segment.\n\n\nClarke has approximately $65 million of cash on hand as well as\n approximately $130 million of marketable securities. Clarke also has\n $40 million in availability through its existing credit facilities.\n Clarke will review how to best use the proceeds received from the\n transaction, which may include general corporate purposes, redeeming\n all or part of Clarke's convertible unsecured debentures, or funding a\n special dividend to shareholders in addition to funding existing or new\n investment opportunities.\n\n\nClarke also announces the outcome of the proposed amendments to the\n terms of its 6.00% convertible unsecured subordinated debentures due\n December 31, 2018 (\"Debentures\"). While a majority of the\n Debentureholders voted in favour of amending the terms of the\n Debentures, there was not the sufficient two-thirds support require...