Dundee closes sale of Android Industries interest

Executive Summary

• Dundee Corp. has closed the sale of its 20% interest in Android Industries LLC, a private company specializing in high-technology-enabled assembly and sequencing for the automotive industry.
• The transaction marks a significant milestone in Dundee's strategy to rationalize its non-core legacy asset portfolio and optimize its focus on the mining sector.
• Dundee received immediate cash proceeds of approximately $27.3 million, with an additional $15.3 million payable contingent upon the release of escrow funds.

Key Details

• Transaction Structure: Sale of Dundee Corp.'s 20% ownership interest in Android Industries LLC.
• Counterparty: The ownership group of Android Industries LLC.
• Asset Description: Android Industries is a private company and a leading high-technology-enabled assembler and sequencer of complex assemblies for the automotive industry.
• Financial Consideration:
  • Immediate Proceeds: Approximately $27.3 million received at closing, net of tax holdbacks and fees.
  • Contingent Proceeds: An incremental $15.3 million payable contingent upon the release of all escrows.
• Strategic Context: The divestiture is part of Dundee's effort to rationalize its remaining non-core legacy assets, allowing the company to focus on its core mining operations and strategic objectives.

Notable Quotes

• "At long last, the closing of the sale of our 20-per-cent interest in Android represents a significant milestone for Dundee as we rationalize what remains of our non-core legacy asset portfolio... This divesture underscores the corporation's commitment to optimizing its asset portfolio and delivering value to shareholders." — Jonathan Goodman, President and Chief Executive Officer of Dundee.