Richard Homburg and Homburg Canada Incorporated announce proposal to eliminate the control block in Homburg Invest Inc., internalize management and optimize balance sheet
(Thomson Reuters ONE) -
May 11, 2011, Montreal, Quebec, Canada - Richard Homburg and Homburg Canada
Incorporated ("HCI") announced today that they have submitted a non-binding
proposal to the Board of Directors of Homburg Invest Inc. ("HII") that would
allow shareholders of HII to vote by class on the elimination of the dual class
share capital structure through which Richard Homburg currently has voting
control of HII. The proposal also includes a business combination between HCI
and HII, creating a new entity which would be publicly listed on the Toronto
Stock Exchange ("TSX"). In addition, Richard Homburg has proposed to internalize
HII's management by terminating the existing asset and property management
agreement with HCI. An important part of the proposal includes exploring
alternatives to optimize the new entity's balance sheet.
Terms and conditions of the proposal remain subject to negotiation amongst the
parties. Any agreed transaction resulting from the proposal will be communicated
to HII shareholders in due course. There can be no assurance that an agreed
transaction will result from this proposal, and terms and conditions of an
agreed transaction could vary from those contemplated by the proposal.
Richard Homburg believes the proposal would be beneficial to HII's shareholders
in the following ways:
* eliminating the control block previously exercised by Richard Homburg;
* eliminating the external management contract would provide HII with
additional flexibility to control and reduce costs;
* optimizing the balance sheet would increase cash flow and increase financial
flexibility;
* it may result in a reduction of the discount at which HII currently trades
relative to its peers;
* alignment of the interests of all shareholders of HII; and
* combined new entity would be better equipped for medium and long term
growth.
About Richard Homburg and HCI
Richard Homburg has a 42-year track record as an entrepreneur, company builder
and team builder. Since he created his first company in 1969, he has become a
highly respected leader in real estate markets through the acquisition and
development of high quality assets in Canada, the United States and Europe.
Homburg Canada is a private real estate investment and management company based
in Nova Scotia, Canada. We are a wholly owned subsidiary of the Homburg Group,
which is controlled by Richard Homburg. From our headquarters in Halifax,
Homburg Canada acts as asset manager for Homburg Invest Inc. as well as for
third parties, including a diverse portfolio of quality real estate in North
America and Europe. We oversee the administrative operations of Homburg's global
portfolio.
-30-
For further information, please contact:
Mr. Bert Albers
902-468-3395
PDF version of the press release:
http://hugin.info/138798/R/1514879/451032.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Homburg Invest Inc. via Thomson Reuters ONE
[HUG#1514879]
Unternehmensinformation / Kurzprofil:
Datum: 11.05.2011 - 23:49 Uhr
Sprache: Deutsch
News-ID 54552
Anzahl Zeichen: 3840
contact information:
Town:
Halifax
Kategorie:
Business News
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"Richard Homburg and Homburg Canada Incorporated announce proposal to eliminate the control block in Homburg Invest Inc., internalize management and optimize balance sheet"
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