ALUMAX INC. TO REDEEM $4.00 SERIES A CONVERTIBLE PREFERRED STOCK.NORCROSS, Ga.--(BUSINESS WIRE)-- Nov. 5, 1996--Alumax Inc. (NYSE NYSE See: New York Stock Exchange :AMX AMX American Motors Experimental AMX Aeromexico Aerovias de Mexico (ICAO code) AMX Air Mobility Express AMX Amberjacks (FAO fish species code) AMX Alabama Motor eXpress ; Toronto:AXI AXI Automated X-Ray Inspection (electronics) AXI Association Xpertise Inc (Calgary, AB, Canada) AXI Ada to X-Window System Interface ) confirmed today that it will redeem all outstanding shares of its $4.00 Series A Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , par value $1.00 per share, on December 18, 1996. Each Series A share will be redeemed at a price of $52.40 per share, plus an amount equal to the quarterly dividend accrued on each Series A share through the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. , for a total redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. of $52.60 per share. As an alternative to redemption, each Series A share may be converted at the option of the holder into 4.1148 shares of Alumax common stock, par value $0.01 per share, until the close of business on December 4, 1996. Fractional shares of common stock will not be issued upon conversion of any Series A shares. In lieu of any fractional share, the company will make a cash payment, computed to the nearest cent, based upon the last reported sale price of Alumax common stock on the date of conversion. As of September 30, 1996, Alumax had 2,333,320 shares of Series A Convertible Preferred Stock outstanding. Also on that date, Alumax had 44,971,854 shares of common stock outstanding. Based on the current price of Alumax common stock, the company expects all holders of its Series A shares to convert these shares to Alumax common stock prior to the close of business on December 4, 1996. Should these conversions occur, they will result in the issuance of approximately 9,600,000 additional shares of Alumax common stock. Alumax is a world leader in aluminum with 1995 year-end assets of more than $3.1 billion and 1995 revenues of more than $2.9 billion. The company produces and markets primary aluminum ingot ingot Mass of metal cast into a size and shape such as a bar, plate, or sheet convenient to store, transport, and work into a semifinished or finished product. The term also refers to a mold in which metal is so cast. , billet and slab and is a major fabricator of value-added aluminum products for the building and construction, transportation, packaging and consumer durable industries. CONTACTS: Alumax, Inc. Thomas R. Hagley, (Media) 770/246-6642 Fax: 770/246-6691 or R. Daniel Loh (Investors) 770/246-6752 Fax: 770/246-6691 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion