Press release from Marketwire
Tuckamore to Sell Interest in Morrison Williams Investment Management LP; Granted a Put Option to Sell Interest in Brompton Corp.
Tuesday, July 05, 2011
Tuckamore to Sell Interest in Morrison Williams Investment Management LP; Granted a Put Option to Sell Interest in Brompton Corp.15:53 EDT Tuesday, July 05, 2011TORONTO, ONTARIO--(Marketwire - July 5, 2011) -NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES Tuckamore Capital Management Inc. ("Tuckamore") (TSX:TX)(TSX:TX.DB.B)(TSX:TX.DB.C) announced today that its indirect wholly-owned subsidiary, Newport Partners Holdings LP, has entered a purchase agreement with Aston Hill Financial Inc. ("Aston Hill") for the sale of Tuckamore's 86.67% indirect interest in Morrison Williams Investment Management LP ("Morrison Williams") for a purchase price of approximately $10 million. The 13.33% interest in Morrison Williams held by sole minority partner MW Holdings Inc. will be sold to Aston Hill at the same time. The sale transactions are expected to close on or about July 27, 2011, and are subject to necessary regulatory approvals and customary terms and conditions.Tuckamore's net proceeds from the sale are expected to be deposited into an escrow account in accordance with the terms of its senior credit facility and the terms of the secured and unsecured indentures to be held and used for specified acquisition purposes and specified working capital purposes as described thereunder.Tuckamore also announced today that it has entered an agreement with Brompton Corp. and Brompton Group Limited ("BGL"), a significant shareholder of Brompton Corp., whereby BGL has granted to Tuckamore an option to require BGL to acquire substantially all of Tuckamore's interest in Brompton Corp. for a purchase price of approximately $17.5 million. Tuckamore's option to require BGL to purchase its interest is conditional on a number of items, including the sale by Brompton of the shares of a subsidiary that manages certain Brompton investment funds to Aston Hill (the "Brompton Sale"). Tuckamore's option is exercisable starting 30 days after the Brompton Sale and expires 90 days after the Brompton Sale. About Tuckamore Tuckamore (formerly Newport Inc.) is a publicly-traded company which invests in successful Canadian private businesses. Tuckamore currently has $442 million invested in 12 businesses representing a diverse cross-section of the Canadian economy. Forward-Looking Statements Certain information included in this news release may constitute forward-looking information within the meaning of securities laws. Such forward-looking information reflects management's current beliefs and is based on information currently available to management of Tuckamore. Forward-looking information involves significant risks and uncertainties (both general and specific) and the risk that the expectations represented in such forward-looking statements will not be achieved. In addition, in evaluating this information, investors should specifically consider various factors, including the risks outlined in the annual information form of Tuckamore dated March 30, 2011 and Tuckamore's other public disclosure documents filed on SEDAR at www.sedar.com, which may cause actual events or results to differ materially from any forward-looking statement. In formulating forward-looking information herein, management has assumed that business and economic conditions affecting Tuckamore and its operating partnerships will continue substantially in the ordinary course, including without limitation, with respect to general levels of economic activity. Although the forward-looking information is based on what management of Tuckamore and the operating partnerships consider to be reasonable assumptions based on information currently available to them, there can be no assurance that actual events or results will be consistent with this forward-looking information, and management's assumptions may prove to be incorrect. This forward-looking information is made as of the date of this news release, and Tuckamore does not assume any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking information.FOR FURTHER INFORMATION PLEASE CONTACT: Keith HalbertTuckamore Capital Management Inc.Chief Financial Officer416email@example.com