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Tuesday, March 6, 2018

Energy Stock News: Enterprise Group (TSX: $E.TO) Announces Letter of Intent to Divest the Business of Calgary Tunnelling & Horizontal Augering


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

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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