Business
Clarke sells interest in Highkelly Drilling Ltd.
HALIFAX , Dec. 6, 2013 /CNW/ - Clarke Inc. ("Clarke" or "the Company") (TSX: CKI CKI.DB....
About this update from Clarke Inc.
[{"type":"text","content":"\n\n\nHALIFAX, Dec. 6, 2013 /CNW/ - Clarke Inc. (\"Clarke\" or \"the Company\")\n (TSX: CKI CKI.DB.A) is pleased to announce that it has sold its 37%\n interest in Highkelly Drilling Ltd. (\"Highkelly\") to CanElson Drilling\n Inc. Clarke received net cash proceeds of $12.4 million on the\n transaction.\n\n\nClarke invested in Highkelly in January 2012 and estimates that it will\n recognize a net gain on the sale of $3.7 million that will be included\n in the year ended December 31, 2013 financial statements. This\n represents an internal rate of return of approximately 19.3%.\n\n\nGeorge Armoyan, President and CEO, stated: \"We are pleased with the\n result of our investment in Highkelly and would like to take this\n opportunity to thank the Highkelly team for all their hard work over\n the past two years.\" Clarke will review how to best deploy the sale\n proceeds, including general corporate purposes, redeeming part of\n Clarke's convertible unsecured debentures, funding additional\n investment opportunities or funding a special dividend to shareholders.\n\n\nThe sale of Highkelly marks Clarke's second completed investment sale in\n Q4, 2013 along with the sale of Bonnett's Energy Corp. which the\n Company announced on November 6, 2013. The Company also disposed of the\n majority of its shares in Vitran Corporation Inc. in Q4, 2013\n generating net cash proceeds of $8.5 million. These three dispositions\n resulted in net cash proceeds to Clarke in the amount of $46.8 million\n during the fourth quarter. Additionally, the Company announced on\n October 31, 2013 the entering into a definitive agreement to sell its\n freight transportation division and expects the transaction to close in\n late 2013 generating further net cash proceeds in excess of $85\n million.\n\n\nAbout Clarke\n\n\nHalifax-based Clarke invests in a variety of private and publicly-traded\n businesses and participates actively where necessary to enhance\n performance and increase its return. Clarke's securities trade on the\n Toronto Stock Exchange (CKI; CKI.DB.A); for more information about\n Clarke, please visit our website at www.clarkeinc.com.\n\n\nForward-Looking Statements\n\n\nThis press release may contain or refer to certain forward-looking\n statements relating, but not limited to, Clarke's expectations,\n intentions, plans and beliefs with respect t...