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Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Little-known China Oceanwide Holdings Group Co. pledged $3.8 billion (U.S.) in a deal to take control of U.S. insurer Genworth Financial Inc. (GNW-N) the latest marker of Chinese firms accelerating a drive overseas while their domestic economy slows and the yuan weakens.
Founded by low-profile but well-connected billionaire Lu Zhiqiang, the Beijing-based investment firm agreed to pay $2.7 billion in cash to buy all Genworth shares, the firms said in a statement on Sunday. The price offers a modest 4.2 percent premium to Genworth's Friday closing price.
Oceanwide also committed another $1.12 billion to cover Genworth debt maturing in 2018, as well as life insurance claims charges faced by the firm spun out of General Electric (GE-N) in 2004. Genworth has seen its share price fall nearly two-thirds in the last 24 months while battling low interest rates and trying to stabilize its troubled long-term health insurance arm.
Both firms' boards backed the deal, reached after two years' "extensive review" by Genworth's board. But the transaction remains subject to regulatory approvals, and likely won't close before mid-2017, they said, without disclosing the exact source of the deal's funding.
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Western Forest Products Inc. (WEF-T) says the province of B.C. has agreed pay it $14-million in compensation for the partial tenure extinguishment from the Maa'nulth First Nations Final Agreement Act that came into effect April 1, 2011.
It said the creation of treaty settlement lands and associated protected area tied to the treaty led to a permanent harvesting rights reduction of 104,000 cubic metres.
The company said it plans to use the proceeds from the compensation to pay down outstanding debt.
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Slate Retail REIT (SRT.UN-T) is buying Robson Crossing, a Publix-anchored centre in Atlanta, Ga. area for $11-million (U.S.).
Closing is expected in the fourth quarter and remains subject to customary closing conditions, the company said.
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Tweed Farms Inc., a subsidiary of Canopy Growth Corp. (CGC-T) has received its license to sell dried cannabis products.
The sale of product is limited to other licensed producers, and in particular its sister company Tweed In., the company said in a release on Monday.
It also said the license capacity has also been amended and the greenhouse facility is now licensed to produce and sell 6,000 kilograms of dried cannabis, through to Jan. 13.
"This current harvest that is underway as we speak will be the first time we've used the full potential of the largest greenhouse in the industry and we're very excited to bring a harvest of this scale to market for medical cannabis patients," stated CEO Bruce Linton.
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Chemtrade Logistics Income Fund (CHE.UN-T) responded Monday to Canexus Corp.'s (CUS-T) response to its hostile takeover bid saying it contains "a number of misleading and incorrect statements.
"We believe Chemtrade's premium, all cash offer to Canexus shareholders provides compelling and certain value. The Canexus Board and management have repeatedly failed their shareholders and have presented no credible plan for growth. Incremental cost cutting and diverting cash flow to pay down debt, instead of investing in their assets, is a recipe for lackluster returns and will not maximize value," stated Chemtrade CEO Mark Davis in a release.
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Capital Power Corp. (CPX-T) reported third-quarter net income of $66-million or 63 cents per share, compared with $49-million or 44 cents per share a year ago.
Revenues were $378-million, down from $469-million a year ago.
"Capital Power's financial results for the third quarter of 2016 were modestly ahead of management's expectations," stated CEO Brian Vaasjo. "Third quarter results benefitted from strong operating performance with average plant availability of 96 per cent and a solid contribution from our portfolio optimization activities."