Dominion Bridge Gains Liquidity Through $96.3 Million Sale of McConnell Dowell.MONTREAL--(BUSINESS WIRE)--May 13, 1998--VSE:DMO DMO Debt Management Office (Bank of England) DMO Destination Marketing Organization DMO Defence Materiel Organisation (Australia) DMO Dental Maintenance Organization DMO Distributed Mission Operations .U.) (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 :DBCO) Allen S. Gerrard, Chairman of DOMINION BRIDGE CORPORATION (NASDAQ/NMS: DBCO; VSE See DOS/VSE. VSE - Virtual Storage Extended : DMO.U) announced that it has entered into a letter of intent to sell its 64 percent stake in McConnell Dowell Corporation Limited ("MDC (1) (Mobile Daughter Card) See riser card. (2) See Meta Data Coalition. ") to ITEQ, Inc., of Houston, Texas. The purchase price of approximately Cdn$96.3 million which is expected to be funded by ITEQ's banking lines, is subject to requisite Australian and US regulatory approvals, and is expected to close in Dominion Bridge's fourth quarter ending September 30th, 1998. Dominion Bridge reported that ITEQ also intends to commence a tender offer for the remaining outstanding shares for MDC, which is publicly traded on the Australian Stock Exchange Australian Stock Exchange (ASX) Australia's major securities market, formed when the six state stock exchanges (Adelaide, Brisbane, Hobart, Melbourne, Perth, and Sydney stock exchanges) were merged in 1987. . "The sale of McConnell Dowell allows Dominion Bridge to concentrate on its North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. , by paying off all of its outstanding bank credit lines and realizing an increase in working capital of approximately Cdn$40.0 million." Mr. Gerrard, Chairman of Dominion Bridge, stated, "This move will enhance shareholder value by restoring financial strength to operations for serving Dominion Bridge clients." Dominion Bridge, established in 1879, is active in the international engineering and infrastructure markets. Dominion Bridge Corporation's subsidiaries are Dominion Bridge, Inc., Steen Becker, Inc., Davie Industries and McConnell Dowell Corporation of Australia. CONTACT: Dominion Bridge Corporation Derek Tennant, 416/340-7507 |
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