Company Allowed Direct Ownership and
Control of GM Canada Dealerships, Assumes Control of Five
Stores
EDMONTON, Dec. 7, 2017 /CNW/ - AutoCanada Inc. (TSX: ACQ)
(or the "Company") today announced two new agreements that will
strengthen its relationship with GM Canada. The Company has
executed a Public Company Master Agreement (PCMA) with GM Canada
that permits AutoCanada's direct ownership and control of GM Canada
dealerships. It has also reached an agreement with CanadaOne Auto
Group, a company controlled by the Company's former CEO and
founder, Mr. Patrick Priestner, that
will see AutoCanada assume control of five of the nine GM Canada
dealerships where it held a majority equity stake with no voting
rights, and CanadaOne Auto Group buying AutoCanada's interest in
four dealerships.
Under the newly negotiated agreements, five dealerships will
become majority owned and controlled by AutoCanada and the
remaining four by CanadaOne Auto Group (ownership by entity
post-closing is presented below). Under the terms of the PCMA, each
General Manager in an AutoCanada/GM Canada dealership will be
required to own a minority equity position in their dealership.
AutoCanada
Dealerships
|
CanadaOne Auto
Group Dealerships
|
Island Chevrolet
Buick GMC, Duncan, BC
|
Kelowna Chevrolet,
Kelowna, BC
|
Bridges Chevrolet
Buick GMC, North Battleford, SK
|
Lakewood Chevrolet,
Edmonton, AB
|
Mann-Northway Auto
Source, Prince Albert, SK
|
Sherwood Park
Chevrolet, Sherwood Park, AB
|
Saskatoon Motor
Products, Saskatoon, SK
|
Sherwood Park Buick
GMC, Sherwood Park, AB
|
McNaught Cadillac
Buick GMC, Winnipeg, MB
|
|
AutoCanada will receive a one-time net payment of approximately
$23 million from CanadaOne Auto Group
as part of the transaction. The transaction was reviewed and
approved by an independent committee of the Board of Directors of
the Company and is expected to close on January 2, 2018, subject to GM Canada's final
approval of the transactions.
FORWARD LOOKING STATEMENTS
Certain statements contained in this news release are
forward‑looking statements and information (collectively
"forward‑looking statements"), within the meaning of the applicable
Canadian securities legislation. We hereby provide cautionary
statements identifying important factors that could cause our
actual results to differ materially from those projected in these
forward‑looking statements. Any statements that express, or involve
discussions as to, expectations, beliefs, plans, objectives,
assumptions or future events or performance (often, but not always,
through the use of words or phrases such as "will likely result",
"are expected to", "will continue", "is anticipated",
"projection", "vision", "goals", "objective", "target",
"schedules", "outlook", "anticipate", "expect", "estimate",
"could", "should", "plan", "seek", "may", "intend", "likely",
"will", "believe" and similar expressions are not historical facts
and are forward‑looking and may involve estimates and assumptions
and are subject to risks, uncertainties and other factors some of
which are beyond our control and difficult to predict. Accordingly,
these factors could cause actual results or outcomes to differ
materially from those expressed in the forward‑looking statements.
Therefore, any such forward‑looking statements are qualified in
their entirety by reference to the factors discussed throughout
this document.
Further, any forward‑looking statement speaks only as of the
date on which such statement is made, and, except as required by
applicable law, we undertake no obligation to update any
forward‑looking statement to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to
time, and it is not possible for management to predict all of such
factors and to assess in advance the impact of each such factor on
our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward‑looking statement.
SOURCE AutoCanada Inc.