Wilshire Sells Canadian O&G Business
|Thursday, April 08, 2004
Wilshire Enterprises has sold its Canadian oil and gas business to Addison Energy Inc., a wholly owned subsidiary of Exco Resources, Inc., for $15 million in gross proceeds. The transaction closed simultaneous with the execution of the definitive agreement.
Chairman and Chief Executive Officer Sherry Wilzig Izak stated: "We are very pleased to announce the sale of our Canadian oil and gas business. This sale, combined with the pending sale of the U.S. oil and gas business announced on March 17, 2004, is another key development in our continuing effort to maximize shareholder value. As a result of a comprehensive effort that included contacting numerous buyers and receiving several bids for parts and all of the Company, we believe that selling the two oil and gas businesses at this time is a significant result for the Company's stockholders.
Ms. Izak added: "As I stated in our March 17, 2004 press release: 'The Company remains committed to maximizing shareholder value and will continue to explore all possible alternatives to accomplish this goal. We believe that our real estate portfolio, based on current financial performance, offers considerable valuation upside. We remain receptive to negotiating acceptable bids to acquire our entire company, while at the same time are prepared to pursue the expansion of our real estate portfolio, by merger or otherwise. In the interim, our goal will be to increase the value of our real estate business, through improvements of our existing properties as well as the potential acquisition of new income generating assets and the potential opportunistic divestiture of select real estate assets. Again, we cannot assure our stockholders of any actions or of the timing of potential actions.'"
The Chairman concluded: "Once again, I am very pleased with the extensive effort put forth by the Company's management team, Board of Directors and outside advisors to initiate and complete the strategic review, to conduct a comprehensive process, to negotiate potential purchase agreements, and, foremost, to evaluate numerous strategic alternatives on behalf of all stockholders. At this time we are very pleased to announce this second major milestone in selling the Canadian oil and gas business."