SERVICE SECTOR / Canadian Fracmaster Ltd. To Repurchase Shares
CALGARY, Jan. 20 /CNW/ - CANADIAN FRACMASTER LTD. announces that the
Toronto Stock Exchange has accepted a notice filed by the Corporation of its
intention to make a normal course issuer bid for the instalment receipts
representing common shares of the Corporation.
The notice provides that as of January 16, 1998, the Corporation has
42,944,057 common shares issued and outstanding and instalment receipts
representing 28,863,016 of the common shares outstanding, and that the
Corporation may, during the period commencing January 22, 1998 and ending
September 9, 1998, purchase on the Toronto Stock Exchange up to 1,443,000
instalment receipts of the Corporation, being approximately 5% of the
currently outstanding instalment receipts. The price which the Corporation
pays for any such instalment receipts, the actual number of instalment
receipts that are purchased and the timing of any such purchases will be
determined by the Corporation during the course of the normal course issuer
bid.
As disclosed in a press release dated December 12, 1997, the Corporation
currently has a normal course issuer bid in place regarding its common shares,
which bid commenced December 16, 1997 and will expire December 15, 1998. The
Normal Course Issuer Bid for the instalment receipts will be in addition to
the Normal Course Issuer Bid for the common shares of the Corporation.
The Corporation believes that the instalment receipts have been trading
in a price range which does not adequately reflect their value in relation to
the Corporation's business, its improved financial results, and its future
business prospects. As a result, depending upon future price movements and
other factors, the Corporation believes that the acquisition and cancellation
of up to 1,443,000 of its instalment receipts at prices less than what the
Corporation believes is the value of those instalment receipts is in the best
interests of the Corporation and its remaining shareholders.
Canadian Fracmaster Ltd. is an international oil and gas service and
production company listed on the Toronto, Montreal and Alberta Stock Exchanges
and trades under the symbol ''CFC''.
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