Vancouver Canucks' Takeover Bid Revised, New Sponsor Announced

Strategic Insights -

Arthur Griffiths, a renowned broadcasting and sports mogul, has revised his takeover bid for the Vancouver Canucks National Hockey League team. The revised offer includes a significant development - a corporate sponsor for the team's new home, General Motors Place. The sponsorship agreement, announced yesterday, has sparked both excitement and criticism from local sports enthusiasts and columnists. As a result of this partnership, the sports and entertainment arena, under construction near B.C. Place stadium, will bear the name of the automobile giant.

The revised takeover bid proposes two transactions. Firstly, a company controlled by Mr. Griffiths and his sister, Emily Griffiths-Hamilton, will offer Northwest shareholders, excluding SAG Holdings Ltd., $70 per share for a minimum of 228,726 common shares and a maximum of 361,095 shares. This is a significant departure from the previous bid, which required all shares to be tendered upon approval. The second part of the offer involves the buyers taking over the arena's obligations, including the $14-million loan, as revealed by Mr. Griffiths. He cited the "onerous" terms of the financing as a primary reason for this aspect of the revised bid.

Key Takeaways:

  • The revised takeover bid from Arthur Griffiths and his sister, Emily Griffiths-Hamilton, values Northwest shareholders at $70 per share for a minimum of 228,726 common shares and a maximum of 361,095 shares.
  • The revised bid offers a partial takeover option, allowing investors to retain their shares if they wish.
  • The partners have secured a corporate sponsor for the team's new home, General Motors Place, which will bear the name of the automobile giant.
  • The sports and entertainment arena, under construction near B.C. Place stadium, is planned for a fall 1995 opening, with construction budgeted at $160-million.
  • Northwest initially borrowed $98-million for the project before requiring an additional $14-million, with the current financing terms being deemed "onerous."
  • The revised bid includes a company taking on the arena's liability, including the $14-million loan, removing the risk of pledging the hockey franchise as security.

Statistics:

  • The revised takeover bid values shares at $70 per share.
  • The construction of the sports and entertainment arena is budgeted at $160-million.
  • The opening of the arena is scheduled for the fall of 1995.
  • The initial loan for the project was $98-million, with an additional $14-million later required.
  • The arena is expected to have nominal or negative value, according to an evaluation by Goepel Shields.

Sources:

  • Goepel Shields & Partners Inc.
  • Wood Gundy Inc.
  • Vancouver Sun (no date specified)