AutoCanada granted right to own GM Canada dealerships
AUTOCANADA INC. has entered into two new agreements that will strengthen its relationship with GM Canada. The company has executed a public company master agreement (PCMA) with GM Canada that permits AutoCanada’s direct ownership and control of GM Canada dealerships. It has also reached an agreement with CanadaOne Auto Group, a company controlled by the company’s former chief executive officer and founder, Patrick Priestner, that will see AutoCanada assume control of five of the nine GM Canada dealerships where it held a majority equity stake with no voting rights, and CanadaOne Auto Group buying AutoCanada’s interest in four dealerships.
Under the newly negotiated agreements, five dealerships will become majority owned and controlled by AutoCanada and the remaining four by CanadaOne Auto Group (ownership by entity postclosing is presented below). Under the terms of the PCMA, each general manager in an AutoCanada/GM Canada dealership will be required to own a minority equity position in their dealership.
(See ACQ Table 1 on page 33)
AutoCanada will receive a one-time net payment of approximately $23-million from CanadaOne Auto Group as part of the transaction. The transaction was reviewed and approved by an independent committee of the board of directors of the company and is expected to close on Jan. 2, 2018, subject to GM Canada’s final approval of the transactions.
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Gordon Ronald Barefoot, Dennis Stephen DesRosiers, Arlene Dickinson, Barry L James, Maryann N Keller, Steven Joseph Landry, Michael Hugh Ross
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