Huntingdon Capital Corp. initiates strategic review process to enhance
shareholder value & announces retention of financial advisors
-- Huntingdon shares continue to trade well below implied IFRS
-- IFRS methodology implies no value for Huntingdon's asset and
property management platform
-- Value add portfolio of 35 industrial, office, retail and
aviation properties provides upside valuation potential
RICHMOND, BC, Feb. 19, 2014 /CNW/ - Huntingdon Capital Corp. ("Huntingdon" or
the "Company") (TSX: HNT, TSX: HNT.DB and TSX: HNT.WT) announced today that
Huntingdon's Board of Directors (the "Board") has approved a strategic review
process aimed at enhancing shareholder value. The Board has initiated this
process to address the persistent discount between Huntingdon's trading price
and the Board's view of the Company's intrinsic value.
Trimaven Capital Advisors Inc. and Evercore Partners Canada Ltd. have been
retained by Huntingdon to act as its financial advisors with regards to the
process. The Board and its advisors will entertain all proposals and
alternatives to enhance shareholder value including proposals to acquire or
merge with the Company.
A recently established Special Committee chaired by Mr. Matt Goldfarb and
comprised of all Huntingdon's independent directors will oversee the process.
"The Company's primary objective since the 2009 merger of IAT Air Cargo
Facilities Income Fund and Huntingdon Real Estate Investment Trust has been to
deliver superior risk-adjusted returns to our shareholders. Since the merger
we have improved operating margins through cost control and aggressive leasing
programs, significantly de-leveraged our balance sheet, successfully brought
to market the initial public offering of FAM Real Estate Investment Trust
("FAM REIT") which is now comprised of 26 stabilized properties vended in by
the Company, established a profitable third-party management business and
delivered a total return of approximately 176% to shareholders, " said Matt
Goldfarb, Chairman of the Special Committee. "Despite these milestones,
Huntingdon's shares continue to trade well below IFRS value and do not reflect
the true value of Huntingdon's assets and management platform," added Mr.
The Board and its advisors believe that Huntingdon's value-add portfolio of 35
industrial, office, retail and aviation-related properties (primarily in
Western Canada with a gross leasable area of 2.7 million square feet) combined
with the Company's approximate 29% interest in FAM REIT and its 10-year
external management contract will provide a unique platform for potential
process participants in both the U.S. and Canada.
Key highlights of Huntingdon today include:
-- Market capitalization of approximately $120 million
-- Cash balance of approximately $46 million
-- Value-add, 2.7 million square foot, portfolio of 35 industrial,
office, retail and aviation properties located throughout
-- IFRS value of $80 per square foot on the freehold portfolio,
well below replacement cost
-- Internalized asset and property management platform with over
-- 29% interest in FAM REIT, a diversified TSX-listed REIT with
$270 million in gross assets
-- 10-year initial term Management Agreement with FAM REIT
Shareholders are cautioned that there can be no assurance that the strategic
review process will lead to any particular course of action or, if a
transaction is undertaken, the terms or timing of such transaction.
About Huntingdon Capital Corp.
Huntingdon is a real estate operating company listed on the TSX (Common
Shares: HNT; Debentures: HNT.DB; Warrants: HNT.WT). Huntingdon owns and
manages a portfolio of 35 industrial, office, retail and aviation-related
properties throughout Canada with a total gross leasable area of 2.7 million
square feet. In addition, Huntingdon owns an approximate 29% interest in FAM
REIT (TSX: F.UN, TSX:F.WT) and manages, on behalf of FAM REIT, a portfolio of
28 industrial, office, and retail properties throughout Canada with a gross
leasable area of 1.8 million square feet.
About Trimaven Capital Advisors Inc.
Trimaven Capital Inc. ("Trimaven") is an independently owned real estate
investment bank. Trimaven offers clients highly specialized advice in mergers
and acquisitions, including hostile and special situations, corporate finance,
private equity and real estate asset advisory. Trimaven's clients include
public, private and corporate owners of real estate as well as investment
management firms and hedge funds. With a reputation and expertise built over
40 years of experience as owners, managers and advisors, Trimaven is known for
its deep industry knowledge, quality advice, and transaction execution
capabilities. Trimaven's principals are accomplished advisors with significant
transactional experience. Prior to forming Trimaven, the principals advised on
over $30 billion of transactions during their tenures at other top-tier firms.
About Evercore Partners Canada Ltd.
Evercore Partners Canada Ltd. is an affiliate of Evercore Partners Inc.
("Evercore"), a leading independent investment banking advisory firm.
Evercore's Investment Banking business advises its clients on mergers,
acquisitions, divestitures, restructurings, financings, public offerings,
private placements and other strategic transactions and also provides
institutional investors with high quality equity research, sales and trading
execution that is free of the conflicts created by proprietary activities.
Evercore's Investment Management business comprises wealth management,
institutional asset management and private equity investing. Evercore serves a
diverse set of clients around the world from 20 offices in North America,
Europe, South America and Asia. More information about Evercore can be found
on the Company's website at www.evercore.com.
Cautionary Note Regarding Forward-Looking Statements
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
SOURCE Huntingdon Capital Corp.
Trimaven Capital Advisors Inc. Contact:Jeffrey Dean, Managing Director Tel:
(416) 602-6415 Email:Jeffrey.firstname.lastname@example.org
Evercore Partners Canada Ltd. Contact:Martin J. Cicco, Senior Managing
Director Tel: (212) 822-7576 Email:email@example.com
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CO: Huntingdon Capital Corp.
ST: British Columbia
-0- Feb/19/2014 13:00 GMT
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