Wynnchurch Capital sells Champion Iron shares for C$172m

An affiliate of Wynnchurch Capital has sold shares of Champion Iron, a Montreal-based iron ore exploration and development business, through the facilities of the Australian Securities Exchange.

An affiliate of Wynnchurch Capital has sold shares of Champion Iron, a Montreal-based iron ore exploration and development business, through the facilities of the Australian Securities Exchange. The sale generated about C$172 million in gross proceeds and left the US private equity firm with an 8.28 percent stake in Champion Iron. Wynnchurch invested in the company in 2016.

PRESS RELEASE

WC Strategic Opportunity, L.P. announces disposition of shares of Champion Iron Limited
ROSEMONT, Ill., Aug. 2, 2021 /CNW/ – On August 2, 2021, WC Strategic Opportunity, L.P. (“Wynnchurch”), sold (the “Disposition”) an aggregate of 25,000,000 ordinary shares (“Shares”) of Champion Iron Limited (“Champion”), through the facilities of the Australian Securities Exchange (ASX) at a price of A$7.50 per Share (corresponding to C$6.87 per Share based on the Bank of Canada exchange rate on July 30, 2021 of A$1.00 equals C$0.9160), for aggregate gross proceeds to Wynnchurch of A$187,500,000 (corresponding to C$171,750,000 based on the Bank of Canada exchange rate on July 30, 2021 of A$1.00 equals C$0.9160).

Immediately prior to the Disposition, Wynnchurch beneficially owned an aggregate of 66,944,444 Shares, representing 13.22% of the issued and outstanding Shares on a non-diluted basis. Immediately following the Disposition, Wynnchurch beneficially owns an aggregate of 41,944,444 Shares, representing 8.28% of the issued and outstanding Shares on a non-diluted basis.

The Shares beneficially owned by Wynnchurch are held for investment purposes. Wynnchurch intends to assess, from time to time, its holdings in Champion, and insofar as it deems it appropriate, based on market conditions and other circumstances and it is permissible in law, Wynnchurch will consider increasing or decreasing its holdings in Champion. Wynnchurch does not have any present intention to acquire ownership of, or control over, additional securities of Champion, or to dispose of securities of Champion, in the future.

An early warning report relating to this transaction will be filed on SEDAR under Champion’s profile at www.sedar.com. To obtain a copy of such report, please contact Mr. Michael Marcotte, Vice President, Investor Relations of Champion at 514-316-4858. Champion’s head office is located at 1100 René-Lévesque Blvd. West, Suite 610, Montréal, QC H3B 4N4 and Wynnchurch’s address is 6250 N. River Road: Suite 10-100, Rosemont, IL 60018.

About Wynnchurch Capital:
Wynnchurch Capital, L.P., headquartered in the Chicago suburb of Rosemont, Illinois, with offices in California, New York, and an affiliate in Canada, was founded in 1999, and is a leading middle-market private equity investment firm. Wynnchurch’s strategy is to partner with middle market companies in the United States and Canada that possess the potential for substantial growth and profit improvement. Wynnchurch Capital manages a number of private equity funds with $4.2 billion of committed capital under management and specializes in recapitalizations, growth capital, management buyouts, corporate carve-outs and restructurings. For more information, please visit: https://www.wynnchurch.com.