TORONTO, March 7, 2017 /CNW/ - Echelon Financial Holdings Inc., "Echelon" or "the Company" (TSX: EFH), announced today that it has completed the sale of its European operations. The closing is effective March 7, 2017.
As previously announced, on August 4, 2016 Echelon entered into a definitive stock purchase agreement to sell its European insurance subsidiary, subject to regulatory approval. On February 28, 2017, regulatory approval was received from the Danish Financial Services Authority, which completed the necessary approvals required for the sale. The Company will retain no residual insurance risk from the sale. At current exchange rates, the Company will receive approximately $5.1 million on closing and an additional $17.2 million prior to December 31, 2017.
"I would like to recognize and thank the employees and management in Europe for their effort and commitment over the last five years," commented Serge Lavoie, Chief Executive Officer of Echelon. "They have built a solid base and launching pad for the new Danish-based shareholder to invest strategically in the business."
About Echelon Financial Holdings Inc.
Founded in 1998, Echelon operates in the property and casualty insurance industry in Canada, primarily focusing on non-standard automobile insurance and other specialty P&C insurance products. The Company operates and distributes insurance products through Echelon Insurance and The Insurance Company of Prince Edward Island. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, please visit echeloninsurance.ca.
This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies and outlook of EFH for 2016 and subsequent periods.
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond Echelon's control, affect the operations, performance and results of and its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.
Echelon does not undertake to update any forward-looking information. Additional information about the risks and uncertainties about Echelon's business is provided in its disclosure materials, including its Annual Information Form and Management Discussion & Analysis, filed with the securities regulatory authorities in Canada, available at www.sedar.com.
SOURCE Echelon Financial Holdings Inc.
For further information: Kathy Shulman, Manager, Investor Relations, 905-214-7880, [email protected]