To Marc and others,
Can anyone interpret what this press release means ... especially with regard to the "reduction in share par value".
Greg
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Restructuring of Look Voyages' share capital
Transat A.T. Inc TRZ
Shares issued 33,876,617 Jan 16 close $12.60
Mon 19 Jan 98 News Release
Mr Lorraine Maheu
Look Voyages, a French company in which Transat holds an 84.37% interest,
finalized a shareholders agreement with regard to a recapitalization plan
which provides for a 106 million FF share issue followed by a reduction in
share par value from 10 FF to 0.20 FF. This procedure, executed in
conformity with applicable French law, will allow Look to rebuild its
capital base. The resolutions seeking to ratify this plan were put to a
shareholders meeting and duly adopted, thus clearing the way for its
implementation in the near future.
Look filed the required prospectus with French authorities and received
authorization last Friday to proceed with the share issue. Subject to any
preferred right of subscription granted to existing shareholders, Transat
will subscribe to this share issue, through one of its subsidiaries, for an
amount not exceeding 106 million FF by converting cash advances previously
made to Look into stock.
Transat management forecasts a 1997 loss for Look, with 1998 also showing a
small loss. 1998-99 should bring a return to profitability.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com |
