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Technology Stocks : Zapata (ZAP) -- Ignore unavailable to you. Want to Upgrade?

To: DanZ who wrote (528)	7/26/1998 12:28:00 PM
From: MARIO PASQUA	Respond to of 1206

" I'm a little confused on the gain that they will record. ZAP received gross proceeds of $82.8 million ($76.7 million net) from their 40% sale of OME. Do you know why the pre-tax gain will be recorded as $86.7 million? That is more than the sales proceeds. I wonder if they are including part of the gain that OME made on this transaction as well since they still own 59.7% of the company." Dan I am just guessing, As you already know...Omega protein (the company) also issued and sold shares in the IPO. <<Omega Protein received $68.1 million from the sale of 4,600,000 shares of its common stock >> <<Zapata sold 5,175,000 shares, and Omega Protein < issued> (I think this refers to the issue of new shares) and sold 4,600,000 shares.>> In addition..<<Omega Protein used a portion of its net proceeds to repay approximately $33.3 million of intercompany indebtedness owed to Zapata>> So, If we take: Sales of omega shares (from Zap) total Net $76.7 million Proceeds from Omega to repay Zap...............$33.3 million Total................................................................. $110 million I really don't know how they arrived to a pre-tax gain of $86.7 million There is a difference of 23.3 million. I am assuming there were other deductions and expenses \, beside the tax liability.