The Federal Government has slapped the For Sale sign on Ridley Terminals once again, but this time around they will be looking to sell off only a 90 percent stake of the North Coast terminal, with ten percent destined to be transferred to the Lax Kw'alaams Band and Metlakatla First Nation.
The Government of Canada (“Canada”) has mandated Canada Development Investment Corporation (both acting for itself and on behalf of Canada, “CDEV”) to conduct and manage a sales process (the “Sales Process”) that is intended to lead to a negotiated agreement with an approved buyer (the “Buyer”) for the purchase of 90 percent of the shares of RTI (the “Proposed Transaction”).
Canada currently owns 100 percent of the shares of RTI. Upon the closing of the Proposed Transaction, the successful Buyer will own 90 percent of the shares of RTI, and the other 10 percent of the shares of RTI will be held, directly or indirectly, by the Lax Kw’alaams Band and the Metlakatla First Nation, who are supporting the Proposed Transaction. -- The preamble to today's announcement that Ridley Terminals is now officially back up for Sale
The Sale to be hosted by the Canada Development Investment Corporation was announced today and will be conducted on an open and competitive basis.
The process ahead will see a short list of prospective purchasers meet with the RTI management team as well as representatives of the two North Coast First Nations.
The short-listed Prospective Purchasers will also have opportunities to meet with RTI’s management team, the Lax Kw’alaams Band and the Metlakatla First Nation, and to conduct a site visit. Short-listed Prospective Purchasers will be asked to submit final offers that will include mark-ups of the proposed form of definitive purchase agreement.
Following receipt of final offers from the short-listed Prospective Purchasers, CDEV will recommend a Prospective Purchaser to be the Buyer and a form of definitive purchase agreement for the Proposed Transaction, for consideration by Canada.
Canada will then consider CDEV’s recommendation, select a Buyer and approve the form of definitive purchase agreement. It is expected that the Proposed Transaction will close in the summer of 2019.
The announcement of the sale of the ten percent stake to Metlakatla and Lax Kw'alaams is also part of the prospectus notes for would be investors, though it comes with an advisory that prospective purchasers should not contact the two First nations directly, unless previously permitted.
Through consultation, Canada has negotiated the terms on which the Lax Kw’alaams Band and the Metlakatla First Nation will become owners (directly or indirectly) of 10 percent of RTI and related agreements. In the Final Stage, the short-listed Prospective Purchasers will have the opportunity to meet with them.
As such, except as permitted by CDEV as part of the Sales Process or otherwise in writing, it is expected that Prospective Purchasers will not attempt to contact or enter into discussions, negotiations, agreements, arrangements or understandings (whether written or oral) with the Lax Kw’alaams Band and the Metlakatla First Nation relating to the ownership of RTI, its business or the Proposed Transaction.
The timeline towards a final decision is expected to take the process through until the summer of 2019
You can review the ten page process letter related to the Sale here.
For more items of note related to Ridley Terminals see our archive page here.
Cross posted from the North Coast Review
No comments:
Post a Comment