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
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, 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. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.