LA JOLLA, Calif., Dec. 2, 2011 (GLOBE NEWSWIRE) -- PICO Holdings, Inc. (Nasdaq:PICO) announced today that the sale of the Company's wholly – owned subsidiary, Nevada Land and Resource Company, LLC has closed. PICO received $31 million in cash in exchange for the sale of PICO's membership interest in NLRC. Excluded from the sale of NLRC were existing promissory notes of approximately $3 million and certain water rights and related land assets. The NLRC assets sold included in excess of 480,000 acres of Nevada real property together with a sizable mineral estate.
It is estimated that the sale of NLRC, after deducting selling costs, will result in a gain before tax of approximately $10 million in PICO's consolidated results of operations in the fourth quarter of 2011.
About PICO Holdings, Inc.
PICO Holdings is a diversified holding company. The Company seeks to build and operate businesses where significant value can be created from the development of unique assets, and to acquire businesses which it identifies as undervalued and where its management participation in operations can aid in the recognition of the businesses' fair value, as well as create additional value.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" about the close of the sale of Nevada Land & Resource Company, LLC. Those forward–looking statements are based on current expectations and assumptions and are subject to various risks and uncertainties, including those related to the estimated pre – tax gain on sale of NLRC. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.