Acasta Enterprises Inc. Announces Funding Certainty to Close Qualifying Acquisition on January 3, 2017

  • Acasta has received sufficient proxies for approval of its Qualifying Acquisition ("QA"): 87% of those voting
  • With net redemptions of $120 million, Acasta has the capital required to close the QA as planned on January 3, 2017
  • Private placement for new and existing fundamental shareholders increased to approximately $134 million, in addition to $30 million from Founders

TORONTO, Dec. 16, 2016 /CNW/ - Acasta Enterprises Inc. (TSX: AEF) ("Acasta") today announced that it has received sufficient proxies for approval of its QA at its special meeting of shareholders (the "Meeting") to approve the QA scheduled for December 20, 2016. 87% of those voting have delivered proxies in favour of approving the QA.

Further, based on investor demand, Acasta has increased the size of the private placement of Class B shares. Commitments received to date will provide at least $134 million of new investment in Acasta at $10.00 per Class B share concurrent with closing of the QA, in addition to $30 million of incremental investment from Acasta's Founders.

Acasta proactively sought a private placement to offset anticipated redemptions. Demand from fundamental investors is an endorsement of Acasta's investment thesis and confidence in its ability to bring value to shareholders.

Acasta will have an aggregate enterprise value of at least $1.1 billion on closing of the QA. With the new share capital of at least $164 million offsetting redemptions of $285 million (70%), net redemptions received as of the redemption expiry time are $120 million, or 30%.

"Our investors' support has ensured that we will meet our planned closing of the QA early in January," said Belinda Stronach, Acasta Director, Chairman of Acasta's Sponsor, Acasta Capital Inc., and Chairman and President of The Stronach Group. "We are delighted that we have obtained such strong support and we thank our shareholders and new investors for their commitment and confidence."

"We are excited about our future, in building the consumer products and commercial aviation platforms, and launching our private equity business," said Anthony Melman, Chairman and CEO of Acasta.

"We will have the leverage capacity to focus on building these incredible businesses," said Geoff Beattie, Chairman of Generation Capital, Lead Independent Director of Acasta, and Director of General Electric, Royal Bank of Canada, and Maple Leaf Foods. "We are confident in our ability to create significant value for our shareholders."

Acasta estimates that, based on 2017 estimated results, the post-closing per share net asset value (NAV) ranges from approximately $11.41 to $14.49, and notes that the value attributable to the private equity business and the commercial aircraft funds could significantly increase Acasta's NAV per share in excess of these figures.

The QA is scheduled to close on January 3, 2017, subject to the satisfaction of certain conditions as set out in the purchase agreements for the three businesses.

The prospectus and the information circular in respect of the Meeting are available under Acasta's profile on SEDAR at www.sedar.com.  Capitalized terms used but not defined herein are as defined in the prospectus.

About Acasta Enterprises Inc.

Acasta is a special purpose acquisition corporation that raised $402.5 million in its initial public offering of Class A restricted voting units of Acasta, in July 2015, with the purpose of effecting a qualifying acquisition. Following the Qualifying Acquisition, Acasta will become a private equity manager and will launch a private equity fund to pursue further market opportunities.

BMO Capital Markets, TD Securities, and Canaccord Genuity Corp. are acting as co-financial advisors and joint bookrunners, and Goodmans LLP is acting as legal counsel, to Acasta.

Cautionary Note Regarding Forward-Looking Statements

This news release may contain forward‐looking statements (within the meaning of applicable securities laws) which reflect Acasta's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on Acasta's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the completion of the initial acquisitions and Acasta's intention to launch as a long-term investment and private equity management firm.

The forward-looking statements in this news release are based on certain assumptions, including without limitation the receipt of any required regulatory and shareholder approvals, and the expected timing related thereto, that Acasta's future objectives and strategies to achieve those objectives will not change, including, without limitation, its plan to raise its first private equity fund and the expectation that no event, change or other circumstance will occur that could give rise to the termination of any of the purchase agreements. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the risk that the QA may not be completed as planned, and that Acasta may not succeed in raising its private equity funds. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, Acasta assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 

SOURCE Acasta Enterprises Inc.

For further information: Please Contact: Richard Smith, Chief Operating Officer and Chief Financial Officer, Telephone No.: 647-725-6707

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www.acastaenterprises.com

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