HC2 Holdings, Inc. a diversified holding company, today provided an update on previously announced strategic initiatives to monetize assets and further reduce debt.
After advanced discussions with a potential counterparty, HC2’s Board of Directors, supported by its management team, has elected to let the exclusivity period with the counterparty to purchase its 100%-owned indirect subsidiaries Continental Insurance Group Ltd. and Continental General Insurance Company (collectively, “Continental Insurance”) lapse. HC2 continues to review strategic alternatives for Continental Insurance and DBM Global Inc., which may or may not include a potential sale, as well as other options that would be in the best interests of HC2. Net proceeds from any potential divestiture would be used to reduce debt at the HC2 holding company level.
“As part of the Board’s ongoing and comprehensive review of HC2 and its subsidiaries, we determined that the best course of action for Continental Insurance was to continue to examine additional strategic alternatives,” said Wayne Barr, Jr., interim Chief Executive Officer of HC2. “Our Board continues to freshly evaluate all strategic options across our business in order to further reduce our leverage, strengthen our capital structure and unlock additional value for our stockholders.”
No assurances can be given that the strategic review process will result in a transaction or other strategic change or outcome for either Continental Insurance or DBM Global. The Company does not intend to discuss or disclose further developments regarding the strategic review process unless and until its Board of Directors has approved a specific course of action or HC2 has otherwise determined that further disclosure is appropriate or required by law.
About HC2
HC2 Holdings, Inc. is a publicly traded diversified holding company, which seeks opportunities to acquire and grow businesses that can generate long-term sustainable free cash flow and attractive returns in order to maximize value for all stakeholders. HC2 has a diverse array of operating subsidiaries across multiple reportable segments, including Construction, Energy, Telecommunications, Life Sciences, Broadcasting, Insurance and Other. HC2’s largest operating subsidiary is DBM Global Inc., a family of companies providing fully integrated structural and steel construction services. Founded in 1994, HC2 is headquartered in New York, New York. Learn more about HC2 and its portfolio companies at www.hc2.com.
Contact:
Investor Relations
Garrett Edson
ir@hc2.com
(212) 235-2691
Contact Information:
Contact:
Investor Relations
Garrett Edson
ir@hc2.com
(212) 235-2691
Tags:
, Wire, Disclosure Newswire, United States, English
Contact Information:
Contact:
Investor Relations
Garrett Edson
ir@hc2.com
(212) 235-2691
