Westaim Announces Closing of Sale of JEVCO
TORONTO, Sept. 5, 2012 /CNW/ - The Westaim Corporation ("Westaim" or the "Company") is pleased to announce that, further to the announcement of May 2, 2012, it has completed the sale of all of the outstanding shares of JEVCO Insurance Company to a wholly-owned subsidiary of Intact Financial Corporation (the "Jevco Transaction") for cash consideration of $530 million.
As previously disclosed, Westaim is proposing to distribute substantially all of the net proceeds received from the Jevco Transaction by way of a return of capital (the "Cash Distribution") on the common shares of the Company ("Common Shares"). The Westaim Board of Directors (the "Board") will determine the amount and timing of the Cash Distribution taking into account the present and contingent liabilities of Westaim as well as its future business objectives. Currently, it is expected that the Cash Distribution will be approximately $0.75 and will be declared by the Board later this month. Details of the Cash Distribution, once determined, will be set out in a separate press release.
In addition, as disclosed in Westaim's management information circular dated May 25, 2012 in respect of the Jevco Transaction (the "Circular"), Westaim has terminated the amended and restated management services agreement dated as of May 11, 2011 (the "MSA") between Westaim and Goodwood Management Inc. on terms consistent with those disclosed in the Circular.
GMP Securities LP acted as financial advisor to Westaim in connection with the Jevco Transaction.
About The Westaim Corporation
Westaim is a financial holding company focused on the property and casualty insurance industry. Westaim's Common Shares are listed on The Toronto Stock Exchange under the trading symbol WED. Further information can be found in the disclosure documents filed by the Company with the securities regulatory authorities, available at www.sedar.com.
Certain portions of this press release as well as other public statements by Westaim contain forward-looking statements. Such forward-looking statements include but are not limited to statements concerning investment strategies and expected rates of return; and strategic alternatives to maximize value for shareholder. These statements are based on current expectations that are subject to risks, uncertainties and assumptions and Westaim can give no assurance that these expectations are correct. Westaim's actual results could differ materially from those anticipated by forward-looking statements for various reasons generally beyond our control, including but not limited to: (i) changes in market conditions or deterioration in underlying investments; (ii) general economic, market, financing, regulatory and industry developments and conditions; (iii) other risk factors set forth in Westaim's Annual Report, Quarterly Reports or Annual Information Form. Westaim disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise except as required by law. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.
SOURCE Westaim Corporation
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