Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Shaw Communications Inc. (SJR-B-T) is unloading its 38.6-per-cent stake in Corus Entertainment Inc. (CJR-T) in a $548-million share sale, after struggling to sell the position to a single buyer last year.
The offering, announced after the market closed on Tuesday, is priced at $6.80 per Class B share, representing a 15.6-per-cent discount to Corus’s closing price. Corus is the owner of the Global television network and a slate of specialty TV channels, such as Food Network Canada and HGTV Canada.
Typically, share sales are sold at a discount of between 2 per cent and 4 per cent to market prices, yet the circumstances of this deal are unique. Chiefly, the offering comes after Shaw hired a financial adviser in 2018 to try to sell the position to a strategic buyer, such as Rogers Communications, or to a private equity firm. After an exhaustive search, the effort proved fruitless – partly because foreign-ownership restrictions prevented any non-Canadian buyers from acquiring the stake on a path to full control of Corus.
Months later, Calgary-based Shaw is now selling its stake to public investors by way of a bought deal. Under this model, investment banks led by TD Securities will buy the entire position and then resell the shares to institutional and retail investors.
-Tim Kiladze and Andrew Willis
Foresters Asset Management is an Ontario-based investment management firm focused on institutional and insurance liability-driven investment with approximately $10.5-billion in assets under management as of April 30, the company stated. Following closing of the transaction, Fiera Capital said its total liability-driven investment AUM will exceed $25-billion.
"The combination of Foresters Asset Management with Fiera Capital will enhance our leading Canadian institutional fixed income and LDI capabilities," said Jean-Philippe Lemay, president and chief operating officer of Fiera Capital's Canadian Division.
The terms of the transaction weren’t disclosed.
Automotive Properties Real Estate Investment Trust (APR.UN-T) reported property rental revenue was $15.7-million in the first quarter, an increase of 38.7 per cent from the first quarter of 2018 and in line with expectations. Net operating income (NOI) was $13.6-million, an increase of 41.4 per cent from last year, the company stated.
Its net loss was $17.9-million compared to net income of $14.5-million a year ago, which the company said was "primarily attributable to the fair value adjustments for Class B LP Units, in addition to interest rate swaps, and higher interest expense and other financing charges netted with the growth in NOI."
Park Lawn Corp. (PLC-T) announced its first-quarter revenue increased 84.3 per cent year-over-year to $50.2-million as compared to $27.2-million in the first quarter of 2018. Net earnings attributable to shareholders increased to $3.3-million or 14 cents per share from $1.7-million or 11 cents a year ago. Analysts were expecting earnings of 15 cents and revenue or $51-million in the latest quarter.
HLS Therapeutics Inc. (HLS-T) announced a $43.5-million a bought deal agreement with GMP Securities L.P. and Bloom Burton Securities Inc. as lead underwriters. The underwriters are buying 2.7 million common shares at a price of $16 each. The stock closed at $16.80 on Tuesday. HLS said the net proceeds will be used “for business development activities to support the launch of HLS’s growing pipeline of products and for working capital and general corporate purposes.”
Leon’s Furniture Ltd. (LNF-T) reported revenue in the first quarter was $499.7-million, which was roughly in line with revenue of $500.7-million a year ago and expectations. Net income came in at $9.3-million or 14 cents per share versus net income of $14.5-million or 12 cents a year ago. Adjusted EPS was 17 cents versus 14 cents a year earlier and ahead of expectations of 14 cents.
Yellow Pages Limited (Y-T) reported revenues for the first quarter decreased to $104.8-million as compared to $159.3-million for the same period last year. Net earnings of $12.7-million or 45 cents per share compared to a net loss of $900,000 or 3 cents a year earlier. Analysts were expecting revenue of $109.1-million and earnings of 19 cents per share in the latest quarter.
The company also announced it will make a $90-million senior secured debt repayment.
StorageVault Canada Inc. (SVI-X) increased its quarterly dividend by half of a per cent and reported revenue for the first quarter increased to $26.2-million compared to $20.9-million for the same quarter last year. Analysts were expecting revenue to come in at $27.1-million. Its net loss of $8.8-million compared to a net loss of $7.8-million a year earlier.
The company also announced two separate agreements to acquire two stores in Ontario and one store in B.C. from two vendor groups for an aggregate purchase price of $55-million.
Extendicare Inc. (EXE-T) reported first-quarter revenue of $274.3-million, up from $271.4-million a year ago and below expectations of $277.4-million. Net earnings of $3-million or 3 cents per share compared to net earnings of $4.8-million or 5 cents a year ago.