AvenEx Energy Corp AVNDF

Can the Elbow River Sale be stopped?

[deisman]

Maybe. If you feel that ER was a major part of Avenex and if you are prepared to file a complaint with the Alberta Securities Commission?

File a Complaint
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IMHO the AvenEx BOD over stepped their authority . Why? Because it required a shareholder vote.

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"the assets involved must be of significant size and of such importance to the corporation that the disposition would have to fundamentally change the nature of the corporation, in either shifting its business objectives or preventing it from continuing to operate as a profitable enterprise."

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IMHO I think ER filled this requirement. Read on to see what Parkland Fuel's take on ER is

Acquisition Highlights:

Grow

• Subject to satisfaction of closing conditions, the assets of Elbow River will be purchased for total cash consideration of $80 million and the assumption of between $10 million and $15 million in debt;
• Elbow River's EBITDA for the four quarters preceding September 30, 2012 was approximately $20 million;
• Expected to be accretive to Parkland shareholders at $0.13/share in net earnings and $0.16/share in distributable cash flow on an annualized basis;
• Parkland's current financial position is sufficient to fund this transaction; and
• Elbow River's current annual sales volumes of approximately 2 billion litres are in addition to Parkland's 2016 target of seven billion litres in fuel sales as outlined in Parkland Penny Plan.

Supply

• Stable and diversified source of additional supply earnings;
• Rail capability enables supply and throughput opportunities for the Bowden Terminal; and
• Additional supply options provide the platform for market expansion.

Operate

• Elbow River will operate as a separate stand-alone subsidiary; and
• Expected opportunities around rail logistics and product terminals.

Elbow River is a North American transporter, supplier and marketer of petroleum products including liquefied petroleum gases (butane, propane, and condensate), crude oil, heavy fuel oil, and a growing portfolio of refined fuel and bio-fuel products. Elbow River has differentiated themselves in this space through their rail car logistics capabilities, managing a fleet of 1,200 rail cars. Their strategy of geographic arbitrage leverages their strong network of relationships to match purchase and sales contracts, employing a risk averse approach to marketing. Operating in the petroleum products marketing sector for 30 years has provided Elbow River with the expertise and logistical capabilities to rapidly respond to emerging opportunities, which has allowed them to establish a record of profitability.

"The acquisition of Elbow River Marketing extends Parkland's marketing capability within the petroleum marketing sector, diversifies our earnings and further differentiates Parkland from other Canadian fuel marketers," said Bob Espey, President and Chief Executive Officer of Parkland. "We see significant opportunity in joining the marketing, logistics, and risk mitigation expertise of Elbow River's highly respected marketing team with Parkland's knowledge and sales capacity within the downstream fuel marketing sector."

Elbow River fulfills an important part of the Parkland Penny Plan by enhancing Parkland's supply capabilities, allowing Parkland to further exploit North American supply and demand imbalances. The Acquisition is expected to extend the Corporation's relationships with refiners, fuel suppliers, and fuel customers. Elbow River's experience in propane and growing focus on fuel products represent two areas of opportunity.

The Acquisition is subject to the receipt of all necessary third party and regulatory approvals including approval under the Competition Act

So if you agree, stand up for yourself and file a complaint.

File a Complaint
[phone]
[e-mail]
File a complaint online