INTERNET--(esecurities.W)--May 11, 1999 - NASCAR® Consolidation: International Speedway Corp. and Penske Motorsports Announce Definitive Merger Agreement
Kaiser Ventures' Interest in Penske Motorsports Valued at $81 Million
ONTARIO, Calif., May 10 /PRNewswire/ -- Kaiser Ventures Inc. (Nasdaq: KRSC - news) announced today that it has agreed to vote the shares represented by its 11.73% interest in Penske Motorsports Inc. (PMI) (Nasdaq: SPWY - news) in favor of the proposed merger between PMI and International Speedway Corporation (ISC) (Nasdaq: ISCA - news). The merger, which was announced earlier today by ISC and PMI, involves ISC's acquisition of 88%, or 12.2 million outstanding common shares, of Penske Motorsports stock that it does not already own for $50 per share. Penske Motorsports stockholders will be able to elect to receive this consideration as either (1) $15.00 in cash and $35.00 in Class A Common Stock of ISC or (2) $50.00 of Class A Common Stock of ISC.
The proposed transaction values Kaiser's 1,627,923 shares of PMI at $81 million. Under the cash and stock election, Kaiser would receive approximately $24 million in cash and approximately $57 million in ISC common stock. Kaiser will retain the option to take all stock.
''We are pleased that, upon the completion of this transaction, our investment in PMI will deliver significant value and liquidity to Kaiser and its shareholders,'' Richard E. Stoddard, Kaiser's Chairman and Chief Executive Officer, said. ''Bill France and International Speedway Corporation have been an integral part of PMI's growth and success, and it was the combined vision of Roger Penske and Bill France that made the California Speedway and our original equity position possible. We are delighted to see them taking their vision to even greater levels,'' Stoddard said.
''This transaction also reinforces our strategy of converting underutilized assets into equity interests with industry leaders in growing businesses, Stoddard said..."
SOURCE: © 1999 Kaiser Ventures Inc. Company Press Release Monday May 10, 7:27 pm Eastern Time biz.yahoo.com
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