Toronto, Ontario (September 9, 2010) – Clairvest Group Inc. (TSX: CVG) (“Clairvest”) and Clairvest Equity Partners III Limited Partnership (“CEP III”) announced today the completion of a reorganization of their investments in Chile.
As part of the transaction, Clairvest sold its three investments in Chile – Casino Marina del Sol, Latin Gaming Chile S.A. and Latin Gaming Osorno S.A. (the “Chilean Gaming Investments”) at original cost to a holding entity (“Chile Holdings”) and received cash proceeds of $15.9M and a 35.6% ownership in Chile Holdings. Additionally, CEP III sold its investment in Casino Marina del Sol to Chile Holdings at cost and received a 40.9% ownership in Chile Holdings, diversifying its investment in Chile from a single casino operation to three operations in distinct markets. Strategic third-party investors purchased a 23.5% interest in Chile Holdings for $15.9M in cash. As a result of the reorganization, Clairvest, CEP III and strategic investors hold the Chilean Gaming Investments through Chile Holdings which now owns a 50% stake in each of Casino Marina del Sol and Latin Gaming Osorno S.A., and loans totaling US$13.8M to Latin Gaming Chile S.A.
Clairvest Group Inc. is a private equity management firm which invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, 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.
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753