March 19, 2018 / 6:03 PM / in 7 months

BRIEF-Acasta Enters Into Agreement To Sell Stellwagen Business Unit

March 19 (Reuters) - Acasta Enterprises Inc:

* ACASTA ENTERS INTO DEFINITIVE AGREEMENT TO SELL STELLWAGEN BUSINESS UNIT

* ACASTA - ‍ TO SELL STELLWAGEN IN EXCHANGE FOR CANCELLATION OF 26 MILLION CLASS B SHARES IN CAPITAL OF CO OWNED BY MARTELLO, CERTAIN ACASTA SHAREHOLDERS

* ACASTA ENTERPRISES INC - ‍ TO SELL STELLWAGEN TO MARTELLO FINANCE COMPANY LIMITED IN EXCHANGE FOR PAYMENT TO ACASTA OF U.S.$35 MILLION​

* ACASTA ENTERPRISES INC - ‍ BOARD, SPECIAL COMMITTEE UNANIMOUSLY DETERMINED TRANSACTION IS IN BEST INTERESTS OF CO, SHAREHOLDERS​

* ACASTA-TO USE PROCEEDS FROM TRANSACTION TO SATISFY PREVIOUSLY DISCLOSED PAYMENT OF $25 MILLION OWED BY CO BY MARCH 31, UNDER ITS $150 MILLION CREDIT FACILITY

* ACASTA ENTERPRISES INC - ‍RECEIVED WRITTEN CONSENTS IN SUPPORT OF TRANSACTION FROM APPROXIMATELY 70% OF DISINTERESTED ACASTA SHAREHOLDERS​

* ACASTA ENTERPRISES INC - ‍ TO SELL STELLWAGEN IN EXCHANGE FOR TERMINATION OF EARN-OUT FROM ACASTA’S ACQUISITION OF STELLWAGEN IN JANUARY 2017​

* ACASTA ENTERPRISES INC - ‍ WILL RETAIN OWNERSHIP OF PROFIT PARTICIPATING NOTES, WILL OVERSEE SALE OF PPNS TO ONE OR MORE THIRD PARTIES​

* ACASTA ENTERPRISES INC - ‍ALSO INTENDS TO USE PROCEEDS FROM SALE OF PPNS TO PAY DOWN INDEBTEDNESS OUTSTANDING UNDER CREDIT FACILITY​

* ACASTA ENTERPRISES - ALSO TO USE PROCEEDS FROM TRANSACTION TO PAY DOWN ADDITIONAL AMOUNTS OUTSTANDING UNDER THE $150 MILLION CREDIT FACILITY

* ACASTA ENTERPRISES INC - ‍BOARD AND SPECIAL COMMITTEE CONTINUE THEIR PREVIOUSLY ANNOUNCED STRATEGIC REVIEW​ Source text for Eikon: Further company coverage:

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