Clairvest Announces Sale Of Gateway Casinos Investments
Toronto, Ontario (April 3, 2007) – Clairvest Group Inc. (TSX:CVG) 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.
“Clairvest partnered with GCI in 2001 when it initially operated four casinos,” noted Jeff Parr, Co-CEO of Clairvest. “We worked with these partners to negotiate the acquisition of seven additional casinos, raise the capital necessary to purchase them and complete the IPO of Gateway Casinos Income Fund on the TSX in 2002. Clairvest is very proud to have been associated with a great ownership group and an outstanding management team. We wish the company every success going forward.”
Details of the agreements are contained in a news release issued today by the Fund, which is appended to this release.
About Clairvest
Clairvest Group Inc. is a Canadian merchant bank that invests its own capital, and that of third parties through Clairvest Equity Partners Limited Partnership and Clairvest Equity Partners III Limited Partnership, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
Cautionary note about forward-looking statements
This news release may contain forward-looking statements with respect to Clairvest Group Inc., its subsidiaries and their investments. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors such as the possibility of the transaction not concluding and actual sale proceeds received which may cause the actual results, performance or achievements of Clairvest, its subsidiaries and their investments to be materially different from any future results, performance or achievements expressed or implied by such forwardlooking statements.
For further information, please contact:
Cameron Williamson
Chief Financial Officer and Corporate Secretary
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753