News snippet on deal and news release Shawcor in Talks to Sell Rexdale Property in Toronto; Net Proceeds Expected to Exceed $45 Million
07:22 AM EST, 11/29/2021 (MT Newswires) -- Oilfield services company Shawcor (SCL.TO) on Monday said it received a letter of intent from a third party eyeing its Rexdale property in Toronto in a transaction that could fetch net proceeds of over $45 million.
Shawcor is in talks to finalize a definitive agreement, which would require the company to enter into a three-year leaseback agreement for the property to ensure operational continuity while it moves to another location. Proceeds from the property sale, which is expected to close during the first half, will be used to pay down debt.
Additionally, Shawcor announced the sale of its Guardian Mexico unit and the closure of its CSI Services business in western Canada. The businesses accounted for roughly $8.6 million of the company's revenue in the last 12 months.