AMERICAN HEALTHCORP, INC. ANNOUNCES DISTRIBUTION DATE FOR SPINOFF OF AMSURG CORP SUBSIDIARY STOCK.NASHVILLE, Tenn.--(BUSINESS WIRE)--Nov. 3, 1997-- Thomas G. Cigarran, Chairman and Chief Executive Officer of American Healthcorp, Inc. (Nasdaq/NM:AMHC AMHC Association of Mental Health Clergy AMHC Aviation Structural Mechanic Hydraulics Chief ), today announced that the Company has executed documents necessary to effect a spinoff Spinoff A new, independent company created through selling or distributing new shares for an existing part of another company. Notes: Spinoffs may be done through a rights offering. of AmSurg Corp, its 58% owned subsidiary, by means of a distribution to American Healthcorp shareholders of all of the Company's AmSurg common stock. The proposed distribution is subject to a number of conditions, and will be based on either a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. Internal Revenue Service ruling or the legal opinions of company counsel that the distribution will be on a substantially tax-free basis. American Healthcorp shareholders are expected to be subject to federal income tax with respect to 1.5% of the shares of AmSurg common stock received by them. American Healthcorp expects the distribution to take place during the first week of December. As of the date of the distribution, AmSurg shares would begin trading as a separate public company on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. . AmSurg Corp is in the business of acquiring, developing and managing single specialty, practice-based ambulatory surgery centers ambulatory surgery center A free-standing center that performs various types of surgery and developing and managing specialty physician networks associated with the ambulatory surgery centers. Mr. Cigarran commented, "We are excited about the prospects of both companies as independent public companies. American Healthcorp believes that the distribution will enable American Healthcorp and AmSurg to finance the expansion of their businesses more effectively and should better position the two companies to provide greater value to stockholders." American Healthcorp, Inc., through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Diabetes Treatment Centers of America, Inc., provides comprehensive diabetes disease management services to managed care organizations and third-party payors and is the nation~s largest operator of hospital-based diabetes treatment and arthritis and osteoporosis osteoporosis (ŏs'tēō'pərō`sĭs), disorder in which the normal replenishment of old bone tissue is severely disrupted, resulting in weakened bones and increased risk of fracture; osteopenia treatment centers. CONTACT: American Healthcorp, Nashville Henry D. Herr, 615/665-1122 |
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