Released on April 28, 2009
Investment Saskatchewan Inc. (IS) tabled its 2008 Annual Report before the Saskatchewan legislature today, reporting unprecedented earnings of $691 million, an increase of $679.5 million compared to $11.5 million earned in 2007.
The significant earnings are due to a gain on the sale of Investment Saskatchewan's interest in Saskferco in the final quarter of the year. The corporation sold Saskferco for total proceeds of $816.9 million, resulting in a gain on sale of $679.8 million. Additionally, Saskferco paid dividends of $68.3 million during the year.
"The sale of Saskferco was one of the largest business transactions in Saskatchewan's history," Investment Saskatchewan Minister Lyle Stewart said. "As a result, the corporation had very healthy cash flow, allowing it to provide a distribution of $792.8 million to its shareholder, Crown Investments Corporation."
The corporation made direct net investments of $22.4 million in 2008. As has been previously announced, IS will not be making any new investment commitments, and government has negotiated a conclusion to its investment management agreement with Victoria Park Capital effective June 30, 2009. The corporation will honour investment commitments previously made, which totalled $7.4 million at year end and will consider protective disbursements to existing investees. Investment Saskatchewan now has a new mandate which is to prudently manage and divest an existing portfolio of investments on behalf of the province.
The consolidated book value of Investment Saskatchewan's portfolio has declined from $328.6 million in 2007 to $174.2 million as at year end 2008. The decline is primarily related to the sale of Saskferco's shares during the year. The repayments of loans, and a decline in book value of some commodity-based investments were also factors.
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For more information, contact:
Jan Carter
Investment Saskatchewan
Regina
Phone: 306-787-0122
Email: jcarter@investsask.com