Business
FirstService completes divestiture of Resolve Corporation through initial public offering; Updates outlook
FirstService completes divestiture of Resolve Corporation through initial public offering; Updates outlook.
About this update from Firstservice Corp
[{"type":"text","content":"\n\n\n\n\nTORONTO, March 20 /CNW/ - (TSX: FSV.SV; NASDAQ: FSRV) FirstService\nCorporation (\"FirstService\") today announced the successful completion of the\npreviously announced divestiture of its business services unit, Resolve\nCorporation (\"Resolve\"), through the initial public offering, in Canada, of\ntrust units of the Resolve Business Outsourcing Income Fund (the \"Fund\").\nFirstService received $112.9 million of cash proceeds (including\nrepayment of inter-company indebtedness) and a 7% retained interest in the\nFund having a value, based on the offering price, of $20.5 million as a result\nof the sale of its stake in Resolve and $127.8 million of cash proceeds and a\n2% retained interest, if the over-allotment option granted to the underwriters\nof the Fund's offering is exercised in full. All amounts are in US dollars.\n\"The successful divestiture of Resolve is a major step forward in\nexecuting our strategy of building a significant diversified property services\ncompany with industry leading business units in commercial real estate,\nresidential property management, integrated security and property improvement\nservices,\" said Jay S. Hennick, Founder and CEO of FirstService. \"Our\nopportunities are global and we will continue to create value for our\nshareholders through internal growth and by identifying and completing\ndisciplined acquisitions with exceptional management teams as our partners.\nCash proceeds from this divestiture, combined with existing cash on hand and\navailable credit facilities, provide FirstService with resources of more than\n$300 million to drive growth,\" he added.\n\nUpdated FirstService outlook\nFirstService is updating the preliminary outlook for fiscal 2007 that was\nissued on January 31, 2006 to reflect the divestiture of Resolve. The updated\noutlook assumes, in addition to the assumptions noted below, that the \nover-allotment option will be exercised in full and that the cash proceeds\nfrom the sale will be invested in short term bank deposits, pending\nreinvestment.\n\n>\n\n\n","length":6398,"tagName":"div"}]