TORONTO, Sept. 5, 2012 /CNW/ - The Westaim Corporation ("Westaim" or the
"Company") is pleased to announce that, further to the announcement of
May 2, 2012, it has completed the sale of all of the outstanding shares
of JEVCO Insurance Company to a wholly-owned subsidiary of Intact
Financial Corporation (the "Jevco Transaction") for cash consideration
of $530 million.
As previously disclosed, Westaim is proposing to distribute
substantially all of the net proceeds received from the Jevco
Transaction by way of a return of capital (the "Cash Distribution") on
the common shares of the Company ("Common Shares"). The Westaim Board
of Directors (the "Board") will determine the amount and timing of the
Cash Distribution taking into account the present and contingent
liabilities of Westaim as well as its future business objectives.
Currently, it is expected that the Cash Distribution will be
approximately $0.75 and will be declared by the Board later this
month. Details of the Cash Distribution, once determined, will be set
out in a separate press release.
In addition, as disclosed in Westaim's management information circular
dated May 25, 2012 in respect of the Jevco Transaction (the
"Circular"), Westaim has terminated the amended and restated management
services agreement dated as of May 11, 2011 (the "MSA") between Westaim
and Goodwood Management Inc. on terms consistent with those disclosed
in the Circular.
GMP Securities LP acted as financial advisor to Westaim in connection
with the Jevco Transaction.
About The Westaim Corporation
Westaim is a financial holding company focused on the property and
casualty insurance industry. Westaim's Common Shares are listed on The
Toronto Stock Exchange under the trading symbol WED. Further
information can be found in the disclosure documents filed by the
Company with the securities regulatory authorities, available at www.sedar.com.
Certain portions of this press release as well as other public
statements by Westaim contain forward-looking statements. Such
forward-looking statements include but are not limited to statements
concerning investment strategies and expected rates of return; and
strategic alternatives to maximize value for shareholder. These
statements are based on current expectations that are subject to risks,
uncertainties and assumptions and Westaim can give no assurance that
these expectations are correct. Westaim's actual results could differ
materially from those anticipated by forward-looking statements for
various reasons generally beyond our control, including but not limited
to: (i) changes in market conditions or deterioration in underlying
investments; (ii) general economic, market, financing, regulatory and
industry developments and conditions; (iii) other risk factors set
forth in Westaim's Annual Report, Quarterly Reports or Annual
Information Form. Westaim disclaims any intention or obligation to
revise forward-looking statements whether as a result of new
information, future developments or otherwise except as required by
law. All forward-looking statements are expressly qualified in their
entirety by this cautionary statement.
SOURCE: Westaim Corporation
For further information:
Jeff Sarfin, Chief Financial Officer
The Westaim Corporation