Huntingdon Capital Corp. Announces Intention to Explore an IPO of Stabilized Properties and Conversion to a Diversified Asset Management Company
RICHMOND, BC, Aug. 9, 2012 /CNW/ - The Board of Directors of Huntingdon Capital Corp. (TSX: HNT, HNT.DB and HNT.WT) (the "Corporation") today announced that it has formed a special committee of the Board of Directors (the "Special Committee") to explore a potential spin out of its stabilized properties into a newly formed real estate investment trust (the "REIT") by way of an initial public offering. The potential new REIT would have an equity value greater than $100 million and would deliver stable and growing cash distributions to its unitholders. The proceeds of the initial public offering would potentially be used by the Corporation to return capital to its shareholders and to build a new alternative investment platform.
"The initiative we are announcing today is aimed at further narrowing the discount between our current trading price and the intrinsic value of our real estate. The contemplated conversion has the potential to improve the growth profile of the Corporation and create significant value for shareholders," said President and CEO Zachary George. "Establishing Huntingdon as a growing diversified asset management company will leverage our management and board's strong track record of disciplined capital allocation and value creation."
There can be no assurance that the process will result in a transaction of any form or, if a transaction is undertaken, as to its terms or timing. The Corporation does not intend to make any further announcements regarding the process unless and until the Board has approved a specific transaction or other course of action or otherwise deems disclosure of developments is appropriate. The Corporation intends to continue to pursue its present business plan during this period.
Huntingdon is listed on the Toronto Stock Exchange under the symbols HNT (Shares), HNT.DB (Debentures), and HNT.WT (Warrants). Huntingdon owns, directly or indirectly, 68 income producing office, industrial, retail and standalone parking lot properties, including aviation-related facilities at five of Canada's leading international airports with a total gross leasable area of 4.5 million square feet; and two land parcels held for development, with other development and expansion opportunities within the portfolio.
Forward-Looking Information:
Certain statements contained in this press release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of our tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest rate fluctuations. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations including, but not limited to, the risks detailed from time to time in Huntingdon's filings with Canadian provincial securities regulators, including its most recent annual information form and management's discussion and analysis. Huntingdon cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Huntingdon does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by applicable law.
The Toronto Stock Exchange has not reviewed nor approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.
SOURCE: Huntingdon Capital Corp.
Zachary R. George, Director, President and Chief Executive Officer
Tel: (604) 249-5119
Fax: (604) 249-5101
Email: [email protected]
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