Finance player increases stake in Leisure Canada
- Submitted by: manso
- Business and Economy
- 07 / 16 / 2011
Dundee Corp., a company controlled by Toronto financier Ned Goodman, nearly doubled its stake in resort builder Leisure Canada Inc. from 12.32 percent to 23.12 percent.
Goodman became chairman of Leisure Canada last year, taking over from company founder Walter Berukoff.
Dundee invested nearly $5 million during a rights offering to eligible shareholders of Leisure Canada, buying at a discount of 12 cents per share. LCN shares traded at 14 cents on the Toronto Stock Exchange July 15, down from 24 cents early this year.
Leisure Canada said it will add the $4.5 million of net proceeds to general funds for working capital purposes.
Dundee Securities Ltd., a subsidiary of Dundee Corp., was the dealer and solicitor of the rights offering.
Vancouver-based Leisure Canada is planning to build a luxury hotel in the Monte Barreto neighborhood of Havana and a golf and marina resort at Jibacoa, east of Havana.
The Monte Barreto project in western Havana and Jibacoa have long been in the making. Planning for the 716-room hotel in Havana is complete, and Leisure Canada said last year it put out a request for proposals to find a general contractor, but construction has not started. While the company recently updated the ready-to-go Jibacoa project to include 600 bungalows and villas for sale, the Cuban government has not given the final green light yet. Leisure Canada recently announced an agreement with the Professional Golfers’ Association Ltd. for the future licensing of the PGA brand at Leisure Canada golf projects in Cuba.
The company is also proposing a hotel on Cayo Largo del Sur, off Cuba’s southwest coast, to be operated by Spain’s Sol Meliá.