Welcome!

News Feed Item

Tuckamore Shareholders-It's About Value

TORONTO, ONTARIO -- (Marketwired) -- 07/07/14 -- Tuckamore Capital Management Inc. (TSX: TX)(TSX.DB.B) ("Tuckamore" or the "Company") released a letter to shareholders today in relation with the Company's previously announced special meeting of shareholders to be held on July 15, 2014. Shareholders will be asked to vote on a proposal pursuant to which Birch Hill Equity Partners ("Birch Hill"), together with certain members of Tuckamore's management, have agreed to acquire all of the issued and outstanding common shares of the Company (each a "share") for cash consideration at a price of $0.75 per share.

The full text of the Board's letter to Shareholders follows:

Dear Fellow Shareholders,

Much has been written in the press and by other market participants about the $0.75 offer in front of Tuckamore shareholders. We want to refocus the discussion on what really matters to shareholders. We understand that first and foremost you are interested in maximizing the value of your shares. Your Board shares that objective.

The $0.75 cash offer we have presented to you, represents the culmination of a comprehensive process to preserve and surface value for all shareholders. As shareholders are aware, the Board engaged in a comprehensive value maximization process that began in late 2012. The Board, assisted by its highly-qualified legal and financial advisors, carefully considered a variety of proposals, examining the opportunities and risks of each one. After considering several alternatives, the Board had a duty to consider and recommend the Birch Hill offer to shareholders.

For years, Tuckamore struggled with a stretched balance sheet and a lack of trading liquidity, which depressed the value of our shares. Our shares traded at $0.11 a year ago, and have averaged approximately $0.31 for the past 5 years (as at March 25, 2014). When current management took over in December 2008, substantial portions of our debt was in default and due on demand.

Many companies in a similar position would have resorted to financing alternatives that would have dramatically diluted or destroyed equity value. Your Board and management team did not pursue those paths and instead chose to preserve equity value for shareholders at every turn.

Management's successful efforts to stabilize the balance sheet and our underlying businesses, included asset sales and operational and managerial improvements. The Board and management's next balance sheet priority is to address the repayment of $85.2 million of debt due in March 2015, and the pending maturity of our debentures in the amount of $176.2 million in March 2016.

Tuckamore requires a long term solution that provides the capital resources required to de-risk the balance sheet and surface value for shareholders.

Birch Hill, a well known and highly regarded private equity investor, has the resources to fund Tuckamore's capital intensive businesses. The $0.75 offer, provides shareholders with an opportunity to receive cash for their shares, while leaving the purchaser to assume approximately $280 million in debt and capital leases. Shareholders of Tuckamore will also be freed of the operational risks associated with our underlying businesses.

Fellow shareholders you have an important decision to make.

Our duty as a Board was to properly consider and recommend an offer that we believe provides you with liquidity, full and immediate value today and eliminates ongoing exposure to operational and financing risk. We have done that, and now the decision is yours to make.

Whether shareholders choose to accept or reject the $0.75 cash offer on July 15th, the Board and management of Tuckamore remain deeply committed to preserving and surfacing value - as we have always done. The Board will continue to seek opportunities to strengthen the balance sheet and reduce debt, improve operational efficiencies and grow our business.

Your vote is important regardless of how many shares you own and we encourage you to exercise your rights as shareholders.

We look forward to seeing you at the meeting.

Yours very truly,

Douglas Brown, Chairman of the Board of Directors

If you have any questions or need assistance in voting your proxy, please contact our proxy solicitor Kingsdale Shareholder Services at 1-888-518-1561 (toll free within North America) or 416-867-2272 (collect calls accepted), or by email at [email protected].

About the Company

Tuckamore has investments in 7 businesses representing a diverse cross-section of the Canadian economy.

About Birch Hill's Investment

The investment will be part of Birch Hill Fund IV with over $1 billion in committed capital.

SOURCE: Tuckamore Capital Management Inc.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of C...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...