Thunderbird Resorts Inc.: Philippine Operations Sold for Net Price in Excess of Group Market Cap
(firmenpresse) - PANAMA, REPUBLIC OF PANAMA -- (Marketwired) -- 08/11/13 -- Thunderbird Resorts Inc. ("Thunderbird" or "Group") (FRANKFURT: 4TR)(EURONEXT: TBIRD) is pleased to announce that it has sold its entire economic interest and management rights in its Philippines and related British Virgin Islands operations to Magnum Leisure Holdings Inc. and its related entities, affiliates of Solar Entertainment Corporation (collectively "Magnum"), for a post-tax, net price of approximately $26.5 million. The Group's reported consolidated debt will also be reduced by at least $9.2 million.
Thunderbird has also executed a 36-month non-compete agreement with Magnum in the Philippines. Of the net price: a) $5 million will be paid via a promissory note that will amortize over approximately 18 months at a 7% interest rate and is backed by a letter of credit issued by a major banking institution; and b) $5 million will be subject to hold backs by Magnum for up to 30 months to cover potential contingent liabilities.
The Group had announced in August 2011 that the Group and Solar Entertainment Corporation ("Solar") would enter into a joint venture to co-own the Philippines operations. The Group's decision to sell rather than to jointly own the Philippine operations was based on further strategic analysis and determined as the best decision to building shareholder value.
While the Philippines represented approximately 45% of the Group's global property EBITDA, the net price plus debt reduction is equal to approximately $1.39 per share or 155% of the Group's 30-day average price of $0.90 per share. Moreover, Thunderbird continues to own approximately the following in Latin America(1):
With the sale of the Philippines, the Group now has fresh capital to further reduce debt and to invest in building cash flows in Peru, Costa Rica and Nicaragua. We will continue to focus on gaming as our core business.
We thank the many dedicated employees and associates who helped Thunderbird to grow in the Philippines. We wish them and Magnum great success. Finally, our special thanks to Angel Sueiro who has resigned as an officer of Thunderbird Resorts Inc. and its affiliates. By remaining with the Philippines operations under new ownership, he facilitated the transaction. Angel Sueiro dedicated many years of service to Thunderbird and we wish him and his family well.
ABOUT THE COMPANY
We are an international provider of branded casino and hospitality services, focused on markets in Latin America. Our mission is to "create extraordinary experiences for our guests." Additional information about the Group is available at .
(1) Effective January 1, 2013, IFRS 11 changed the way that joint ventures are accounted for whereby proportional consolidation is no longer allowed and equity accounting should be applied to joint ventures. Until further notice and for the convenience of the reader and for illustrative purposes, the Group has elected to represent the Costa Rican joint venture proportionally when discussing financial performance in this release. Such presentation varies from the way that the Group will account for the Costa Rican joint venture in our Half-year Financial Statements and Annual Audited Financial Statements.
Cautionary Notice: This release contains certain forward-looking statements within the meaning of the securities laws and regulations of various international, federal, and state jurisdictions. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential revenue and future plans and objectives of the Group are forward-looking statements that involve risk and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Group's forward-looking statements include competitive pressures, unfavorable changes in regulatory structures, and general risks associated with business, all of which are disclosed under the heading "Risk Factors" and elsewhere in the Group's documents filed from time-to-time with the AFM and other regulatory authorities.
Contacts:
Thunderbird Resorts Inc.
Peter LeSar
Chief Financial Officer
(507) 223-1234
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Datum: 12.08.2013 - 03:24 Uhr
Sprache: Deutsch
News-ID 286554
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PANAMA, REPUBLIC OF PANAMA
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Recreation
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