Printer Friendly

CROWNAMERICA OFFERS TO REPURCHASE 525,000 COMMON SHARES

 DALTON, Ga., March 23 /PRNewswire/ -- CrownAmerica, Inc. said today that it will offer to repurchase 525,000, or approximately 50 percent, of its 1,053,000 outstanding common shares, at a cash purchase price not in excess of $11.50 nor less than $8.50 per share.
 Tendering shareholders will select the lowest price within that range at which they would be willing to tender shares. The company will then select a purchase price, and the same amount will be paid for each share accepted by the company. The purchase price will be the lowest price at which 525,000 shares can be purchased from shareholders who have tendered shares at or below that price. Shareholders tendering at prices above the purchase price selected by the company will not have any of their shares purchased.
 G. Lane Hamilton, president, said the company's board of directors decided on March 8 to invite shareholders to tender their shares for cash. Under the terms and subject to the conditions of the tender offer statement which will be mailed today to all shareholders, 525,000 shares will be purchased if they are validly tendered by midnight, Eastern time, April 20.
 Hamilton said the transaction will present shareholders the option of retaining their shares or receiving a cash price for such shares in excess of the prevailing market prior to the offering. Provisions of the offer will also permit most shareholders to receive capital gain or loss treatment for federal income tax purposes on a sale made by them.
 "The board of directors concluded that the repurchase of shares was the best use of certain proceeds received from the recent sale of one of our plants to Aladdin Mills, Inc.," he said.
 Earlier this year, CrownAmerica sold land, building and a majority of machinery and equipment of a Texture-Tex plant in Dalton. The company received approximately $6 million after payment of taxes and capital expenditures for relocation. Texture-Tex will be operating its filament processing business at one of the original Dalton plants of Crown Cotton Mills.
 "We also expect that there will be a significant reduction in the number of shareholders, thus permitting the company to go private and to eliminate substantial annual costs associated with preparation and filing of reports with the Securities and Exchange Commission," Hamilton added. "There has been only a limited trading market since the company's shares were delisted by NASDAQ on December 1," he concluded.
 CrownAmerica, Inc. is a leading supplier of processed filament yarns for the carpet industry. Its subsidiaries operate plants in Dalton and near Heerlen in the Netherlands under the name Texture-Tex, Inc.
 -0- 3/23/93
 /CONTACT: G. Lane Hamilton or David Hamilton of CrownAmerica, 706-278-1422/


CO: CrownAmerica, Inc. ST: Georgia IN: TEX SU:

RA-BN -- AT008 -- 8601 03/23/93 10:48 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 23, 1993
Words:467
Previous Article:NEDERLANDSE REASSURANTIE GROEP INTENDS TO DISCONTINUE NON-LIFE REINSURANCE UNDERWRITING
Next Article:RELEASE OF NEW STUDY DEMONSTRATES COST SAVINGS IN MEDICAL REHABILITATION
Topics:


Related Articles
CROWNAMERICA, INC. REPORTS FOURTH QUARTER, YEAR-END RESULTS
CROWNAMERICA REPORTS FIRST QUARTER RESULTS
CROWNAMERICA REPORTS RESULTS
ALADDIN, CROWNAMERICA REACH AGREEMENT FOR PLANT SALE; CROWNAMERICA TO RELOCATE DALTON OPERATION
CROWNAMERICA REPORTS FIRST QUARTER RESULTS
CROWNAMERICA COMPLETES PLANT SALE
CROWNAMERICA REPORTS MID-YEAR OPERATING RESULTS
CROWNAMERICA EXTENDS TENDER OFFER
CROWNAMERICA TO PAY $11.50 PER SHARE FOR 485,105 COMMON SHARES
CROWNAMERICA REPORTS RESULTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters