THE ONDAATJE CORPORATION ACQUIRES INTEREST IN AMALGAMATED BEAN COFFEE TRADING CO.TORONTO--(BUSINESS WIRE)--MARCH 3, 1995--THE ONDAATJE CORP.(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME, VSE See DOS/VSE. VSE - Virtual Storage Extended ,: VOC (Vertical Online Community) See vertical portal. ) The Ondaatje Corporation group of companies announced today that it has completed a significant step in its business plan. The Ondaatje Corporation has negotiated an agreement to acquire 50 percent of Amalgamated a·mal·ga·mate v. a·mal·ga·mat·ed, a·mal·ga·mat·ing, a·mal·ga·mates v.tr. 1. To combine into a unified or integrated whole; unite. See Synonyms at mix. 2. Bean Coffee Trading Co. ("ABC ABC in full American Broadcasting Co. Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. ") for approximately $21,000,000, which agreement we intend to assign to Forbes Capital International Limited ("FCIL FCIL Foreign Comparative and International Law FCIL Formation Complémentaire d'Initiative Locale (French: Local Initiative Complementary Training) FCIL Fellow of the Central Institute of London FCIL Fellow of The Chartered Institute of Linguists "). FCIL is owned by a public company 50 percent owned by The Ondaatje Corporation. As a result, The Ondaatje Corporation will acquire a 25 percent interest in ABC. Mr. V.G. Siddhartha, a well respected, firmly established businessman in the Indian business community, with interests in stockbrokering, investment banking, coffee, cement and granite will also own 50 percent of ABC. ABC, which is based in Bangalore, India, is in the business of procuring, curing, marketing and exporting coffee and providing secured financing to coffee growers. In 1994, ABC procured and exported over 8,000 tons of coffee which represents approximately 10 percent of total India coffee exports. Unaudited net income of ABC for the nine months ended December 31, 1994 was $5.5 million on revenues of $18.7 million. Immediately after closing ABC will have approximately $28 million in cash to further the expansion of the profitable lines of business. Plans for ABC include capitalizing on the debt free situation and the addition of selected value added products to the existing profitable lines of business. The closing of this transaction is expected to occur in May 1995 and is subject to certain conditions, including The Ondaatje Corporation group of companies being satisfied with results of its due diligence investigation and the receipt of regulatory approvals from the Reserve Bank of India The Reserve Bank of India (RBI) is the central bank of India, and was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Since its inception, it has been headquartered in Mumbai. and the Foreign Investment Promotion Board. The Company will continue to look for additional business opportunities in South East Asia and elsewhere to complement its present investments in this region. CONTACT: James McGlone Chief Financial Officer The Ondaatje Corporation (416) 925-3555 REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or 80 |
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