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Rexall Founder and Chairman Daryl Katz has made a new offer to purchase the Edmonton Oilers and related assets. The terms of the offer, which were not publicly disclosed, are being delivered directly to the shareholders of the Edmonton Investors Group.
The offer, according to sources, is for $188-million and the difference this time around is, it appears to have a chance of succeeding. Katz's previous offers for the team had fallen on deaf ears.
Katz's offer was made at the encouragement of a number of significant EIG shareholders over the past six months. In particular, Katz called Cal Nichols, Founding Chairman of the Board of EIG on Thursday morning to outline the terms and conditions of the offer. Nichols said that it was an offer that he would enthusiastically support.
"I am extremely proud of what the EIG has done for the Oilers, the City of Edmonton, and Oilers fans everywhere, but it's probably time to pass the torch to a new generation of ownership," said Nichols, in a press release issued by the CNW Group. "I believe that Daryl will be an outstanding owner of the Edmonton Oilers and an important leader in the growth of our City. In addition, the sale of the team will have served all my fellow shareholders very well."
Nichols had been aware of Katz's new initiative for about three weeks and said roughly 50 per cent of his group wanted to sell.
"That meant the other 50 per cent had to buy those shares and take on more debt," he said. "Then there was the ongoing issue of having to put more money into a new downtown arena.
"I looked at all the steep hills to climb and the amount of gas in my tank and I didn't think I was up for it. On Monday, I resigned as chairman … and put my shares up for sale."
Daryl Katz added, "I have great respect for everything Cal and the EIG shareholders have done for the Oilers and for the City of Edmonton. I want to continue that tradition with a commitment to strong local ownership and an eciting vision for the Oilers. The centerpiece of that vision is a new world-class arena complex at the heart of a revitalized downtown."
Mr. Katz added, "If the undecided EIG shareholders come on board, as I hope they do, and my offer is approved, I will commit my time, energy and on the order of $100-million in additional funds towards a new building. I will be asking Cal to help lead that effort on my behalf and to continue to represent the Edmonton Oilers on the NHL Board of Governors as he has done so aby for so long."
The offer requires approval of EIG shareholders and the National Hockey League.
