RE: RE: Equity stake in Another GM dealer. I do not care how they try to spin this - this ownership structure is completely ******. I love that they have gotten into GM and I don't doubt that this dealership is a good investment - but the structure is a mess and will be a mess at some point in time. Please search the web and find another major astute investor that would buy a Non-voting share minority share. How do you get rid of management under this >>>>>>
EDMONTON, June 2, 2012 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ) announced today that it has purchased a 31% non-voting equity interest in Petersen GMC Buick ("Petersen"), a dealership located in Sherwood Park, Alberta. Petersen has been servicing the Sherwood Park and Greater Edmonton area for over twenty-eight years and in 2011 sold 707 new vehicles and 604 used vehicles.
In accordance with the terms of GM Canada's approval, AutoCanada shall make its investment through a holding company together with Pat Priestner, Chief Executive Officer of AutoCanada, and other senior managers, with Mr. Priestner having 100% of the voting shares of the holding company and Mr. Priestner named as Dealer Operator of Petersen. The holding company shall have a 51% voting interest in Petersen, with Blaine and Todd Nicholson purchasing the remaining 49% voting interest. The transaction was reviewed and approved by AutoCanada's independent Board of Directors.
"We are pleased to add a Buick GMC dealership to our portfolio," stated Pat Priestner. "Petersen has been a long-standing dealership in the Sherwood Park area and is highly regarded for its outstanding customer service and commitment to the community, and we are honoured to have the opportunity to continue this tradition."
"As stated in our press release of May 1, 2012, in respect to any future GM dealership acquisitions outside of Sherwood Park, we will seek to acquire a 100% ownership interest, in which AutoCanada would purchase an 80% non-voting equity interest, with myself and other senior managers purchasing a 20% equity interest; and I will have 100% voting control and be named Dealer Operator, in accordance with GM Canada requirements," Pat Priestner stated.