The Financial Post reports in its Saturday edition that McCarthy Corp PLC, a London-based and Alberta Stock Exchange-listed investment company, is becoming more intimate with British businessman Richard Branson's Virgin Group. Virgin holds 18.2 per-cent of McCarthy, is looking for board representation, is backstopping the $42 million rights issue McCarthy disclosed on Thursday and will benefit when McCarthy invests at least $19 million of the money raised in Branson's V2 music company, according to McCarthy. A great deal of McCarthy Corp.'s assets are now Virgin-related and, going forward, this will be a growing feature of the corporation's identity, according to chairman Rory McCarthy. The company, which owns 33 per-cent of V2, plans to raise the $42 million from existing shareholders through a rights issue. Up to $24 million will be reinvested in Branson's V2, according to president Tim McCarthy. The rest will be used to retire bank debt and for working capital.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
|
