Energy Stock News:
Enterprise Group (TSX: $E.TO) Announces Letter of Intent to Divest the Business
of Calgary Tunnelling & Horizontal Augering
St.
Albert, AB - March 6, 2018 (Investorideas.com Newswire) Enterprise Group,
Inc. (TSX:E) ("Enterprise," or "the
Company") is pleased to announce that it has entered into a non-binding
letter of intent for the sale of the assets of its trenchless solutions
business unit, Calgary Tunnelling & Horizontal Augering ("CTHA"),
to a private arm's length purchaser.
Pursuant
to the terms of the letter of intent, Enterprise proposes to sell all of the
assets relating to the business carried on by CTHA for total proceeds of
approximately $21 million, subject to certain adjustments for inventory and
working capital. All proceeds from the transaction would be used to reduce
Enterprise's debt. On completion of the transaction the Company will be net
debt free.
Enterprise
expects to complete the transaction on or about March 15. Completion of the
transaction is subject to negotiation of a definitive agreement, finalization
of satisfactory due diligence, obtaining third party consents and approvals and
other customary closing conditions.
Completion
of the transaction allows the company to pursue several attractive growth opportunities
in the specialty equipment rental space. Management intends to focus its
forward attention on the equipment rental sector.
For questions or additional
information, please contact:
Leonard
Jaroszuk, President & CEO, or
Desmond O'Kell, Senior Vice-President
780-418-4400
contact@enterprisegrp.ca
Desmond O'Kell, Senior Vice-President
780-418-4400
contact@enterprisegrp.ca
Forward Looking
Information
Certain
statements contained in this news release constitute forward-looking
information. These statements relate to future events or the Company's future
performance. The use of any of the words "could", "expect",
"believe", "will", "projected",
"estimated" and similar expressions and statements relating to
matters that are not historical facts are intended to identify forward-looking
information and are based on the Company's current belief or assumptions as to
the outcome and timing of such future events. In particular, this news release
contains forward looking information relating to the proposed sale of CTHA, the
terms and timing of such transaction and the use of proceeds therefrom. These
forward-looking statements are based on assumptions and are subject to numerous
risks and uncertainties, certain of which are beyond the Company's control,
including the negotiation of a definitive agreement, obtaining all necessary
third party consents and approvals, satisfaction or waiver of closing
conditions, general economic conditions, industry conditions and competitive
factors. There is no assurance that the proposed transaction will be completed
on the terms set forth herein or at all. Actual future results may differ
materially. The Company's Annual Information Form and other documents filed
with securities regulatory authorities (accessible through the SEDAR
website www.sedar.com) describe the risks, material assumptions
and other factors that could influence actual results and which are
incorporated herein by reference. The Company disclaims any intention or
obligation to publicly update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, except as
may be expressly required by applicable securities laws.
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