Dutch Smit sells Smit Seacor stake
ROTTERDAM, Feb 26 (Reuters) - Dutch shipping group Smit Internationale said it had agreed to sell its entire stake in
Seacor Smit Inc (CKH - news) to the U.S. company.
''The amount involved in the sale is $37,024,000, which implies a price per share of $52.00,'' Smit said.
Smit said it had received the 712,000 shares in December 1996, as partial payment for its sale of Smit Internationale's supply
vessels fleet to Seacor Holding Inc.
Smit Internationale spokesman Ton Kienhuis told Reuters his company had sold the stake, representing about five to six
percent of Seacor Smit's outstanding share capital, because it did not receive any dividends on the shares.
In addition to that, keeping the shares would also involve running risks both in currency rate terms and in terms of Seacor
Smit's share price.
Kienhuis said Smit Internationale welcomed the cash payment, also because of recent investments the Dutch group has made.
Seacor Smit had plenty of cash and was therefore well-positioned to strike the deal.
Smit Internationale said it had also agreed that Seacor Smit would meet additional obligations of the 1996 transaction this year
instead of in 1999, as previously agreed.
Smit Seacor will pay $20.9 million in cash in the first week of March. In January 1999, Seacor Smit will pay another $23.2
million in the form of five-year Seacor Smit Inc bonds.
Smit Internationale said this implied it had made a total pre-tax gain of about 100 million guilders on the transaction. This gain
will be included in the Dutch group's 1998 results.
Tax pressure will be low because of fiscal compensation for losses posted in previous years, it added.
Smit Internationale said it would keep a representative in Seacor Smit's board of directors. Both firms would keep joint
interests through a number of joint ventures, it added. |
