The board of directors of Calgary-based Logan International Inc., a manufacturer of downhole fishing and intervention tools for the oil and gas industry, has undertaken a strategic review process that will include seeking proposals from potential buyers. The decision was taken when directors concluded that the company’s common shares trade “at a substantial discount to the inherent value” of its businesses and underlying assets. Logan has been a portfolio company of U.S. private equity firm Cadent Energy Partners since 2006.
Logan International Inc. Announces Strategic Review Process
CALGARY, ALBERTA–(Marketwired – May 22, 2013) – Logan International Inc. (TSX:LII) (“Logan” or the “Company”) announced today that the Board of Directors of the Company has undertaken a process to identify, examine and consider strategic alternatives available to maximize value for shareholders. This process includes seeking proposals from potential buyers. Simmons & Company International has been engaged as the exclusive financial advisor of the Board of Directors to assist in this process.
The initiation of this strategic alternative review process is not in response to any proposed transaction. Rather, the Board of Directors undertook a thorough review of the Company’s current share price, assets and operations and concluded that the common shares of Logan trade at a substantial discount to the inherent value of the businesses and underlying assets of Logan. Accordingly, the Board of Directors has decided to initiate this process to identify, examine and consider a range of strategic alternatives available to the Company. The ultimate objective of carrying out this review is to determine which alternative might result in superior value for shareholders of the Company.
The Company has not set a definitive schedule to complete its strategic review. Logan does not intend to disclose developments with respect to the strategic review process unless and until its Board of Directors has approved a course of action or otherwise deems disclosure of developments is appropriate. There can be no assurance that any transaction will occur, or if a transaction is undertaken, as to its terms or timing.
This press release contains forward-looking statements, including, without limitation, statements relating to the timing and completion of the strategic review process. These statements relate to future events or future performance of Logan. When used in this press release, the words “may”, “could”, “will”, “intend”, “propose”, “potential” and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect Logan’s current views with respect to certain events and are subject to certain risks, uncertainties and assumptions. Although Logan believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Many factors could cause Logan’s actual results, performance, or achievements to materially differ from those described in this press release. Readers are referred to Logan’s Annual Information Form filed on www.sedar.com, which identifies significant risk factors which could cause actual results to differ from those contained in the forward-looking statements. Should one or more risks or uncertainties materialize or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. Logan does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein in any jurisdiction.
For more information about Logan International Inc. please visit our website at www.loganinternationalinc.com.
Logan International Inc.
Chief Executive Officer
Logan International Inc.
Chief Financial Officer