Aberdeen to Raise $8.1 MM from Sale
TORONTO, ONTARIO–(Aug. 14, 2015) - ABERDEEN INTERNATIONAL INC. (“Aberdeen”, or the “Company”) (TSX:AAB) has entered into an agreement to sell certain public and private equity holdings to Ore Acquisition Partners, LP, an investment vehicle owned by funds managed by Landmark Equity Advisors, LLC (“Landmark Partners”). As part of the transaction, Aberdeen will also transfer its shares in Tahoe Resources to the partnership, with payment for those shares being deferred until such shares are sold.
Aberdeen is selling a portfolio of public and private holdings owned prior to September 2014 for an aggregate price of approximately $11.8 million to Ore Acquisition Partners L.P. Transaction highlights include, upon closing, Aberdeen will receive gross proceeds of approximately $8.1 million. Included in the sale are 325,000 shares of Tahoe Resources, for which payment will be deferred until the entire Tahoe position is sold. The deferred payment to Aberdeen will be equal to the net proceeds received from the future sales of these Tahoe shares. As part of the terms of the sale, Aberdeen has the right to an additional $2,000,000 earn out, which is payable upon achievement of certain milestones. Aberdeen will provide management and administrative services to the partnership for a minimum of three and up to five years and will receive a management fee in addition to a small minority interest in the net profits of the partnership.
Aberdeen will retain a number of significant recent investments, including its 44% interest in African Thunder Platinum with a book value of $10.3 million and a portfolio of several smaller publicly traded holdings with a current market value of approximately $3.2 million. Aberdeen intends to use a substantial amount of the net proceeds from the sale for future investments in pre-IPO and/or public resource companies and/or projects with undervalued high quality resources, in keeping with the current business model of Aberdeen.
Going forward the Aberdeen portfolio will consist largely of cash and holdings in acquisitions made since the Letter of Intent (“LOI”) was announced in September 2014, including its stake in African Thunder Platinum.
David Stein, President and CEO of Aberdeen, stated, “We have been patiently working on this transaction for the past year, and believe this strategic move to unlock value in our illiquid historical portfolio will allow Aberdeen to continue to take full-advantage of new opportunities in the mining sector. We look forward to continuing to grow the strong partnership with Landmark Partners over the coming years. We believe the strength of our recent investments will continue to generate upside for Aberdeen shareholders and are excited with the prospect of deploying the cash proceeds for future opportunities. Over the past year we have seen the financial health of the mining sector deteriorate. As a result, we believe we can acquire controlling interests in projects which are currently undervalued in order to generate significant long-term returns for our shareholders, and capitalize on the strong track record of our team’s mining industry investment expertise.”
Michael Carrano, Director at Landmark, said, “Landmark Partners is pleased to partner with David and the Aberdeen team to acquire these assets and provide liquidity to satisfy Aberdeen International’s current strategic objectives. We view this as an opportunity to work with a leading global natural resources investor, and look forward to expanding our partnership with Aberdeen as we continue to grow our real assets investment platform.”
It is anticipated that closing of the transaction will occur on or before August 31, 2015. Closing of the transaction is subject to receipt of all regulatory approvals, including that of the Toronto Stock Exchange, and such other conditions as may be imposed by the TSX. Aberdeen has engaged Sixpoint Partners LLC to act as strategic advisors with respect to the proposed transaction. Landmark is being represented in the transaction by legal counsel from Kirkland & Ellis LLP and from Osler Hoskin & Harcourt LLP. Aberdeen is being represented in this transaction by legal counsel from Cassels Brock and Blackwell LLP.
About Aberdeen International Inc:
Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-IPO and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; (ii) are undervalued in foreign capital markets; and/or (iii) operate in jurisdictions with low to moderate local political risk. Aberdeen will seek to provide value-added managerial and board advisory services to companies.
For additional information, please visit our website at www.aberdeeninternational.ca and follow us on Facebook and Twitter: AberdeenAAB.
About Landmark Partners:
Landmark Partners specializes in secondary market transactions of private equity and real estate investments, with approximately U.S. $15 billion of committed capital, as of December 31, 2014. Founded in 1989, the firm has one of the longest track records in the industry and is a leading source of liquidity to owners of interests in real estate, venture, mezzanine and buyout limited partnerships. Landmark Partners has completed 460 transactions in its 25-year history and acquired interests in over 1,700 partnerships, managed by over 650 general partners. Landmark Partners has offices in Simsbury, CT, Boston, MA, New York, NY, and London, UK.
Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may”, “will” and include without limitation, statements regarding the ability to complete the transaction, proceeds to be received on closing or subsequently, the anticipated timing with respect to the completion of the transaction, the ability of the Company to generate additional value for shareholders as a result of such transactions, past success as an indicator of future success; net asset value of the Company; the potential of investee companies and the appreciation of their share price; the Company’s plan of business operations; industry opportunities and dynamics and anticipated returns. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, and regulatory risks. Most of these factors are beyond the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Aberdeen International Inc.
Manager, Investor Relations
Aberdeen International Inc.
President and Chief Executive Officer
Vice President, Investor Relations and Business Development