Amserv Healthcare signs letter of intent.SAN DIEGO--(BUSINESS WIRE)--Jan. 18, 1996--Amserv Healthcare Inc. ("AMSERV") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AMSR AMSR Advanced Microwave Scanning Radiometer AMSR Advanced Microwave Scanner Radiometer AMSR Advanced Multiplicity Shift Register AMSR Aviation Maintenance and Supply Readiness AMSR Advanced Mechanically Scanned Radiometer AMSR Autonomous Missile Site Radar ) announced the signing of a letter of intent to merge with Star Multi Care Services Inc. (NASDAQ:SMCS SMCS St. Michael's College School (Toronto, Canada) SMCS State Mediation and Conciliation Service (California) SMCS Structural Mode Control System SMCS Standard Machinery Control System ) ("Star"), in a stock transaction intended to qualify as a tax free reorganization and to utilize a "pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. " for accounting purposes. Pursuant to the merger, each outstanding share of Amserv's common stock would be converted into .409 shares of Star's common stock, representing a ratio of one share of Star's common stock for each 2.445 shares of Amserv's common stock. The closing prices on Jan. 17, 1996 for Amserv's and Star's common stock were $2.50 and $7.00, respectively. Gene Mora, chairman and chief executive officer of Amserv, commented, "We have been looking for the right opportunity for our shareholders. Star and its management have a superb track record. This merger will create a more attractive and diversified health care company for our shareholders." Amserv had previously announced in October 1995, the commencement of a comprehensive process to evaluate the alternatives for the company. Mora also stated, "After reviewing a number of proposals, we believe that this strategic combination will enhance value for the Amserv shareholders." Following the merger Amserv will become a 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. of Star. The merger is subject to the signing of a definitive agreement by Feb. 9, 1996, shareholder approval of both companies and other conditions. Star Multi Care Services Inc. is a primary provider of proprietary, custodial and high-tech health care services, and staffing to hospitals and other medical facilities throughout the New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. , upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. , and southeastern Florida. Amserv Healthcare Inc. is a health care company providing home care services, with six branch offices located in New Jersey and Ohio. CONTACT: Amserv Healthcare Gene Mora, 619/597-1000, ext. 210 |
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