Friday June 9, 11:30 am Eastern Time
Company Press Release
CHC Helicopter Corporation
Management-Led Buy-Out Proposed for CHC's Canadian Divisions
ST. JOHN'S, NF, June 9 /CNW-PRN/ - CHC Helicopter Corporation ("CHC'') (TSE: FLY.A - news and FLY.B - news; NASDAQ: FLYA news) announced today it has entered into a memorandum of understanding with the management of its two domestic divisions, Canadian Helicopters Eastern ("CHE'') and Canadian Helicopters Western ("CHW'') for the sale of the divisions' assets to a management-led group.
The proposed management buy-out is under consideration only, and is subject to numerous conditions, including the negotiation and execution of definitive agreements, the availability of equity and debt financing and the receipt of necessary consents and approvals.
The purchase price would be a cash amount equal to the net book value of the assets of CHE and CHW, currently estimated at $130 million. Of that amount, CHC would keep a $25.5 million investment and retain a 45 per cent ownership interest.
The company would be operated by the current management of the two divisions that comprise this business. These Canadian onshore helicopter operations have a fleet of 3 heavy, 24 medium and 130 light helicopters.
CHC would still have a substantial interest in the domestic Canadian operations while concentrating on its core activity of offshore oil and gas helicopter support.
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.