CLAIRVEST ANNOUNCES SALE OF GATEWAY CASINOS INVESTMENTS
April 3, 2007 – Clairvest today announced it has entered into agreements to realize on its casino interests in western Canada. The transactions call for Clairvest to dispose of its 28.4% interest in Gateway Casinos Inc. (GCI) and 5.7% interest in Gateway Casinos Income Fund (the Fund), both based in Burnaby, B.C.
Should a transaction close on anticipated terms, Clairvest will receive gross proceeds of approximately $130 million for the two holdings subject to customary taxes and transactional costs to be determined shortly. That compares with the combined book value of GCI and the Fund, net of associated debt, of approximately $73 million at December 31, 2006.
The acquirer is New World Gaming Partners Limited, a joint venture held by Publishing and Broadcasting Limited (PBL) and Macquarie Bank Limited. Both PBL and Macquarie are headquartered in Sydney, Australia.