Science & Technology
Science and Technology
Science and Technology
Tue, March 31, 2009
Mon, March 30, 2009
Clairvest Group Inc.: Clairvest Receives Dividends From and Repays Loans to Gateway Casinos
TORONTO, ONTARIO--(Marketwire - March 30, 2009) - Clairvest Group Inc. (TSX:CVG) today announced that the Company received dividends from a Gateway Casinos Inc. entity totaling $104.9 million. Clairvest also repaid loans it had received from Gateway Casinos entities totaling $101.7 million. As previously announced, the loans were non-interest bearing, repayable on demand, and collateralized by Clairvest's interest in the Gateway Casinos entities. The receipt of the dividends and the repayment of the loans completed Clairvest's exit from Gateway and increased Clairvest's book value by $0.20 per share.
Clairvest initially invested $24 million in Gateway in 2001. Over the life of its investment Clairvest received pre-tax proceeds of 9.1 times the initial investment and generated a pre-tax internal rate of return of 50%. The Company's investment in Gateway was selected by the Canadian Venture Capital & Private Equity Association as the 2007 "Deal of the Year".
"Gateway was our first of many diverse investments in the gaming sector," said Jeff Parr, Co-Chief Executive Officer and Managing Director of Clairvest Group Inc. "The experience and knowledge that we gained through our eight-year relationship with the Gateway team has positioned us to play an active role in the continuing development of the gaming industry."
About Clairvest
Clairvest Group Inc. is a Canadian merchant bank that invests its own capital and that of third parties, through Clairvest Equity Partners Limited Partnership and Clairvest Equity Partners III Limited Partnership, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
