BTG Sells Remainder of Its Holdings in GTSI
FAIRFAX, Va.--(BUSINESS WIRE)--Oct. 23, 2000--BTG, Inc. (Nasdaq: BTGI), an information systems and technical services company, today announced the sale of 1.3 million shares of GTSI Corp. common stock, representing the remainder of BTG's holdings in GTSI.
GTSI purchased the 1.3 million shares from BTG for $4.25 per share. GTSI's stock closed today at $3.06. BTG received its holdings in GTSI as partial payment for the sale of substantially all the assets of its product reselling division to GTSI in February 1998.
Under today's sale, BTG received cash proceeds of approximately $5.5 million, which has been used to retire outstanding debt. BTG will recognize a non-operating loss of $910,000, on a pre-tax basis, in connection with this sale in the third quarter of its fiscal 2001.
BTG President and CEO Edward H. Bersoff said that, although the company will recognize a non-operating loss from this transaction, liquidating this investment several years before BTG would otherwise have been allowed to do so is clearly in the best interests of the company since it converts a restricted asset into cash. By agreement with GTSI Corp., BTG was effectively prohibited from selling any portion of its holdings until February 2004. |
