MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING MONDAY, FEBRUARY 9, 1998 (6)
SERVICE SECTOR
Airgen Corporation (AIR.A/ASE) announced that it has entered into an Option Agreement to purchase Commercial Sandblasting and Painting Ltd. and its subsidiary Christie Corrosion Control (1983) Ltd. The Option Agreement allows Airgen to acquire, on or before May 15, 1998, all of the shares of Commercial and Christie, and several related companies. The purchase price of $8,800,000 plus adjustments, will be made up of cash in the amount of $7,920,000 and Airgen Class A common shares in the amount of $880,000. Airgen plans to complete the acquisition of Commercial, subject to obtaining regulatory and other approvals, through debt and equity financing to be obtained within the next 60 days.
The Commercial group of companies is a major provider of protective coating services in western Canada, with over $11 million in consolidated revenues in the fiscal year ended 30 November, 1997. In addition to servicing the oilfield and pipeline industries, it also serves the mining and structural steel industries. The company operates from two year-round shop facilities in Saskatoon and Lloydminster, and operates one of the largest fleets of field service coatings units. Airgen previously acquired its first protective coatings company, Mocoat Limited, in Jane 1997. The Commercial group, together with Mocoat, will establish Airgen as a leading provider of protective coating services in western Canada.
Airgen is a diversified oilfield service company that provides (1) underbalanced drilling services, (2) heavy oil thermal recovery services, and (3) asset integrity services, currently pipeline testing and protective coatings. Airgen's goal is to become a leading provider of oilfield services by acquiring and developing successful private oilfield service companies, and investing in promising technologies.
The US$93-million takeover of embattled Dominion Bridge Corporation by Houston-based American Eco Corporation construction group inched forward yesterday. The companies are "in exclusive negotiations" until 5 p.m. Thursday on American Eco's planned acquisition of Dominion with an offer of debentures convertible into American Eco shares and worth about US$3 per Dominion share.
American Eco must inject US$5 million cash into Dominion by Thursday by buying Dominion shares and provide a US$25-million loan once a definitive agreement is reached.
The US$5 million is already in escrow, say sources close to the talks, and a definitive agreement could be signed within two weeks.
Michael McGinnis, American Eco chairman, will take over as Dominion's chairman and chief executive from Michel MarengŠre if the preliminary agreement is signed Thursday, bringing in a new vice-president of finance. He will start by rebuilding relations with customers, suppliers and employees.
But the future of MarengŠre, chief operating officer Nicolas Matossian and other senior Dominion managers remains unclear.
Dominion shares (DBCO/NASDAQ) fell 1/16 yesterday to US$13 1/32, while American Eco shares (ECX/TSE, ECGOF/NASDAQ) dipped 50› in Toronto to $16.50, and 7/32 in New York to US$11 7/32.
Matossian would not comment on reports that, with three boardroom resignations in the past week, the independent directors are in control and have retained their own lawyers.
A US$16-million financing proposed with Sweden's Sanda Investment Group remains on ice pending the outcome of the talks.
Analysts said if American Eco succeeds, it would take 60 to 90 days for the detailed offer to go out to shareholders, and another 35 days before a special meeting could approve the deal. A 90% vote would be sought.
American Eco's full 1997 results are expected in a few days. Nine-month net income was US$12.5 million (US83› a share) on revenue of US$150 million, compared with US$6.3 million (US61›) on revenue of US$90.5 million a year earlier.
American Eco is a construction, engineering and fabrication company and is building heavy components for the Sable Island natural gas project at a Halifax subsidiary.
"Our revenue is now running at a US$300 million annual rate or about the same as Dominion without its Australian engineering unit," said John Pennie, vice-chairman, in Toronto. "We're interested in all Dominion's businesses and we're confident the talks will succeed."
In Jackson, Miss., a spokesman at Roxco Ltd., a U.S. construction company that tabled a bid for Dominion two weeks ago, said: "We're moving on and wish them both well. But they face challenging problems and American Eco may have a tiger by the tail."
There is a dramatic global shortage of offshore drilling rigs, he added. "We were interested in Dominion mainly because of its Davie shipbuilding unit in Quebec City."
PIPELINES
The National Energy Board's Alliance Pipeline Project regional public hearing will commence in Fort St. John on 11 February 1998. The hearing sessions will take place at the Pioneer Inn, 9830 - 100th Avenue.
MISC.
Green Maple Energy (GMN/ASE) announces the resignation of Dr. Narayan Goswami from the Board of Directors of the company effective February 5, 1998. Management thanks Dr. Goswami for his contributions over the years to the company. Green Maple is an oil and gas exploring and operating company.
Ironwood Petroleum Ltd. (IWP/ASE) intends to purchase up to a maximum of 500,000 of its Class "A" Common Shares, representing 5.3% of the 9,399,892 issued and outstanding common shares at February 2, 1998 (or 9.1% of the public float of 5,580,919). This Normal Course Issuer Bid may commence on or about February 16, 1998 and will terminate on January 31, 1999.
CrownJoule Exploration Ltd., (CJE/TSE) is pleased to announce the appointment of Ms. Katharine T. Trafford to the Board of Directors of the company. Ms. Trafford brings extensive financial and investment banking experience to the Board. Ms. Trafford holds a joint Honors Degree in Economics and Accounting from the University of Dundee in Scotland. Upon graduation, Ms. Trafford was employed as an analyst with Petro Canada before spending the next ten years in the financial industry with Levesque Beaubien, First Boston and, most recently, Richardson Greenshields of Canada Limited. While with Richardson Greenshields, Ms. Trafford was Director of Institutional Sales and Trading in Toronto and, most recently, Director of Investment Banking in Calgary. Ms. Trafford is currently a private Financial Consultant and brings more than fifteen years of extensive financial experience, particularly in the areas of corporate finance, mergers and acquisitions and institutional investment. Ms. Trafford's business experience, energy, enthusiasm and forthright financial advice will contribute to CrownJoule's continued growth and success.
CrownJoule Exploration Ltd. is a natural gas exploration and production company focused in west central Alberta and currently produces over 12 Mmcfe/d (1200 Boed) of natural gas and associated liquids from its two gas plants in its core focus area. In addition to its developed properties, CrownJoule has over 53,000 net acres of undeveloped land in its exploration portfolio.
Sharon Energy Ltd.(SHY/VSE) announced today that the Board of Directors has passed a Resolution to amend previously approved Stock Option Agreements as to share price only. Five-year stock options were granted to directors, officers and employees of the Company under the Company's Share Option Plan on January 7, 1997 (279,000 options), February 14, 1997 (191,000 options) and April 15, 1997 (275,000 options) at Cdn$0.69, Cdn$0.60 and Cdn$0.60 respectively. Today's Resolution by the Board authorizes amendment of the share price to Cdn$0.35, which is above the average of the last 10 day's trading price. All other terms and conditions of the Stock Option Agreements will remain in full force and effect.
Sharon Energy Ltd. is an oil and gas exploration and production firm headquartered in Englewood, Colorado, with gas properties in California. Sharon specializes in the application of high-resolution 2-D and 3-D seismic to reduce exploration risk and enhance development opportunity.
FINANCING
Quadra Resources Corp (QDRA.U/CDN)
Message 3384339
First Calgary Petroleums Ltd. - (FCP/TSE')
Message 3383994
Redeco Energy Inc. (RE/ASE)
Message 3383994
Benz Energy Ltd. (BZG/VSE)
techstocks.com
Total Energy Services Ltd. (TOT/ASE)
Message 3385170
END
|
