Richard Homburg and Homburg Canada Incorporated announce proposal to eliminate the control block in Homburg Invest Inc., internalize management and optimize balance sheet

MONTREAL, May 11 /CNW/ - Richard Homburg and Homburg Canada Incorporated ("HCI") announced today that they have submitted a non-binding proposal to the Board of Directors of Homburg Invest Inc. ("HII") that would allow shareholders of HII to vote by class on the elimination of the dual class share capital structure through which Richard Homburg currently has voting control of HII. The proposal also includes a business combination between HCI and HII, creating a new entity which would be publicly listed on the Toronto Stock Exchange ("TSX"). In addition, Richard Homburg has proposed to internalize HII's management by terminating the existing asset and property management agreement with HCI. An important part of the proposal includes exploring alternatives to optimize the new entity's balance sheet.

Terms and conditions of the proposal remain subject to negotiation amongst the parties. Any agreed transaction resulting from the proposal will be communicated to HII shareholders in due course. There can be no assurance that an agreed transaction will result from this proposal, and terms and conditions of an agreed transaction could vary from those contemplated by the proposal.

Richard Homburg believes the proposal would be beneficial to HII's shareholders in the following ways:

  • eliminating the control block previously exercised by Richard Homburg;
  • eliminating the external management contract would provide HII with additional flexibility to control and reduce costs;
  • optimizing the balance sheet would increase cash flow and increase financial flexibility;
  • it may result in a reduction of the discount at which HII currently trades relative to its peers;
  • alignment of the interests of all shareholders of HII; and
  • combined new entity would be better equipped for medium and long term growth.

About Richard Homburg and HCI

Richard Homburg has a 42-year track record as an entrepreneur, company builder and team builder. Since he created his first company in 1969, he has become a highly respected leader in real estate markets through the acquisition and development of high quality assets in Canada, the United States and Europe.

Homburg Canada is a private real estate investment and management company based in Nova Scotia, Canada. We are a wholly owned subsidiary of the Homburg Group, which is controlled by Richard Homburg. From our headquarters in Halifax, Homburg Canada acts as asset manager for Homburg Invest Inc. as well as for third parties, including a diverse portfolio of quality real estate in North America and Europe. We oversee the administrative operations of Homburg's global portfolio.

SOURCE HOMBURG CANADA INCORPORATED

For further information:

Mr. Bert Albers
902-468-3395

Profil de l'entreprise

HOMBURG CANADA INCORPORATED

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.