|By PR Newswire||
|December 6, 2013 08:55 AM EST|
HALIFAX, Dec. 6, 2013 /CNW/ - Clarke Inc. ("Clarke" or "the Company") (TSX: CKI CKI.DB.A) is pleased to announce that it has sold its 37% interest in Highkelly Drilling Ltd. ("Highkelly") to CanElson Drilling Inc. Clarke received net cash proceeds of $12.4 million on the transaction.
Clarke invested in Highkelly in January 2012 and estimates that it will recognize a net gain on the sale of $3.7 million that will be included in the year ended December 31, 2013 financial statements. This represents an internal rate of return of approximately 19.3%.
George Armoyan, President and CEO, stated: "We are pleased with the result of our investment in Highkelly and would like to take this opportunity to thank the Highkelly team for all their hard work over the past two years." Clarke will review how to best deploy the sale proceeds, including general corporate purposes, redeeming part of Clarke's convertible unsecured debentures, funding additional investment opportunities or funding a special dividend to shareholders.
The sale of Highkelly marks Clarke's second completed investment sale in Q4, 2013 along with the sale of Bonnett's Energy Corp. which the Company announced on November 6, 2013. The Company also disposed of the majority of its shares in Vitran Corporation Inc. in Q4, 2013 generating net cash proceeds of $8.5 million. These three dispositions resulted in net cash proceeds to Clarke in the amount of $46.8 million during the fourth quarter. Additionally, the Company announced on October 31, 2013 the entering into a definitive agreement to sell its freight transportation division and expects the transaction to close in late 2013 generating further net cash proceeds in excess of $85 million.
Halifax-based Clarke invests in a variety of private and publicly-traded businesses and participates actively where necessary to enhance performance and increase its return. Clarke's securities trade on the Toronto Stock Exchange (CKI; CKI.DB.A); for more information about Clarke, please visit our website at www.clarkeinc.com.
This press release may contain or refer to certain forward-looking statements relating, but not limited to, Clarke's expectations, intentions, plans and beliefs with respect to Clarke. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variations, including negative variations, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. These forward-looking statements include, but are not limited to, statements regarding the trading price of the Company's securities not fully reflecting the value of the Company's business.
Forward-looking statements rely on certain underlying assumptions that, if not realized, can result in such forward-looking statements not being achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Clarke to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Risks and uncertainties include, among others, the Company's investment strategy, legal and regulatory risks, general market risk, potential lack of diversification in the Company's investments, and interest rates and foreign currency fluctuations. Although Clarke has attempted to identify important factors that could cause actual actions, events or results or cause actions, events or results not to be estimated or intended, there can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Other than as required by applicable Canadian securities laws, Clarke does not update or revise any such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Clarke Inc.