More CHC divestment!
Monday June 5, 2:31 pm Eastern Time
Press Release
SOURCE: CHC Helicopter Corporation
CHC sells Scandinavian subsidiaries
ST. JOHN'S, NF, June 5 /CNW/ - CHC Helicopter Corporation ("CHC") (TSE: FLY.A - news
and FLY.B - news; NASDAQ: FLYA - news) is pleased to announce the following sales of
non-core assets in Sweden and Norway for total proceeds of approximately $20 million:
1. CHC's wholly-owned subsidiary, Heliflyg AB, of Borlange, Sweden, has been sold to Osterman Helicopter i Goteborg AB for 36.5 million SEK (CDN $6.09 million);
2. CHC has entered into an agreement to sell its wholly-owned subsidiary, Lufttransport, of Tromso, Norway, to Norwegian Air Shuttle AS (NAS) for 85 million NOK (CDN $14.2 million). Included in the sale agreement, expected to close June 30, NAS assumes lease financing for seven (7) Beech KingAir 200s used in Air Ambulance work, and has paid CHC a 20 million NOK (CDN $3.4 million) non-refundable deposit.
Heliflyg is an onshore helicopter services company operating small and medium sized helicopters in Sweden. Its total revenues and historic EBITDA for the past 12 months were approximately CDN $14.3 million and CDN $1.2 million, respectively.
Lufttransport is primarily a fixed-wing air ambulance service, serving communities in Norway's far north, and providing some helicopter air ambulance services. Its total revenues and historic EBITDA for the past 12 months were $25.7 million and $1.3 million respectively.
CHC Chairman and Chief Executive Officer Craig L. Dobbin said: "The sale of these two non-core divisions is another step in CHC's strategic plan to seriously reduce debt and strengthen the company's position as the world's leading offshore oil and gas helicopter services company. By concentrating on our core strengths, we will make better use of capital for our shareholders."
CHC Helicopter Corporation is the world's leading provider of helicopter transportation services, with a combined fleet of 320 light, medium and heavy aircraft operating in 21 countries, and with approximately 2,600 employees worldwide.