Homburg Invest receives non-binding proposal from controlling shareholder
(Thomson Reuters ONE) -
Board Establishes Independent Committee and Seeks to Appoint Independent
Financial Advisor
Halifax, Nova Scotia, May 11, 2011 (TSX: HII.A & HII.B and AEX:HII) - Homburg
Invest Inc. ("HII" or the "Company") announced today that its Board of Directors
received a non-binding proposal (the "Proposal") from Richard Homburg and
Homburg Canada Incorporated ("HCI") (a private company controlled by Mr.
Homburg) to eliminate the control block in HII, internalize management and
optimize the balance sheet, in accordance with the terms of their press release
of today's date.
Mr. Homburg, through associated entities, is the controlling shareholder of HII.
The terms of the Proposal received 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. 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. If
implemented, it would result in the creation of a new publicly-listed entity.
The Board of Directors of HII has established an Independent Committee of the
Board (the "Committee") to review the Proposal or any alternatives available to
the Company. The Committee has engaged independent legal counsel and will seek
to engage an independent financial advisor to assist it in evaluating the
Proposal and any eventual transaction.
"The Board of Directors and the Independent Committee will consider the Proposal
carefully in the best interests of all stakeholders, including minority
shareholders", said Michael Arnold, Chairman of the Board of HII.
Terms and conditions of the Proposal remain subject to negotiation and all
required regulatory approvals. Any agreed transaction resulting from the
Proposal will be communicated to shareholders of HII 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.
HCI is a private company that is distinct from publicly traded Homburg Canada
Real Estate Investment Trust, which is not a party to the Proposal.
About Homburg Invest
Homburg Invest, with its head office in Halifax, Nova Scotia, owns and develops
a diversified portfolio of quality real estate including office, retail,
industrial and residential apartment and townhouse properties throughout Canada,
the United States and Europe.
-30-
For further information, please contact:
Paul de la Plante
NATIONAL Public Relations
514 843-2332
This news release may contain statements which by their nature are forward
looking and express the Company's beliefs, expectations or intentions regarding
future performance, future events or trends. Forward looking statements are made
by the Company in good faith, given management's expectations or intentions
however, they are subject to market conditions, acquisitions, occupancy rates,
capital requirements, sources of funds, expense levels, operating performance
and other matters. Therefore, forward looking statements contain assumptions
which are subject to various factors including: unknown risks and uncertainties:
general economic conditions; local market factors; performance of other third
parties; environmental concerns; and interest rates, any of which may cause
actual results to differ from the Company's good faith beliefs, expectations or
intentions which have been expressed in or may be implied from this news
release. Therefore, forward looking statements are not guarantees of future
performance and are subject to known and unknown risks. Information and
statements in this document, other than historical information, should be
considered forward-looking and reflect management's current views of future
events and financial performance that involve a number of risks and
uncertainties. Factors that could cause actual results to differ materially
include, but are not limited to, the following: general economic conditions and
developments within the real estate industry, competition and the management of
growth. The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.
PDF version of the press release:
http://hugin.info/138798/R/1514881/451034.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#1514881]
Unternehmensinformation / Kurzprofil:
Datum: 12.05.2011 - 02:45 Uhr
Sprache: Deutsch
News-ID 54553
Anzahl Zeichen: 5542
contact information:
Town:
Halifax
Kategorie:
Business News
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"Homburg Invest receives non-binding proposal from controlling shareholder"
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