TURNER CORPORATION ENTERS NEW AGREEMENT WITH KARL STEINER HOLDING OF SWITZERLAND
TURNER CORPORATION ENTERS NEW AGREEMENT WITH
KARL STEINER HOLDING OF SWITZERLAND
NEW YORK, Feb. 18 /PRNewswire/ -- The Turner Corporation (AMEX: TUR) and Karl Steiner Holding Corporation of Zurich, Switzerland, have entered into a preliminary understanding regarding creation of a new Turner-Steiner International construction management company and at the same time the purchase by Steiner of $15 million of new convertible securities in Turner,.
The new international construction company will acquire Turner's current international construction subsidiary, Turner International Industries, Inc. (TIII). It will engage in construction activities throughout the world other than in North America and in parts of Europe. Turner will continue its current construction business in North America and selected other areas through Turner Construction Company and its other domestic construction subsidiaries and Steiner will continue its current construction activities in Europe.
A new class of preferred stock will be purchased by Steiner for $9 million and will be convertible into one million shares of Turner common stock. Also, five-year convertible debentures will be purchased by Steiner for their principal amount of $6 million and will be convertible into 600,000 shares of Turner common stock,. If Steiner were to convert both the preferred stock and the convertible debentures, it would own slightly more than 21 percent of Turner's common stock on a fully diluted basis.
The transaction is subject to preparation and execution of final agreements and to approval by the boards of directors of both Turner and Steiner.
Turner is the largest general builder in the United States and Steiner is the largest general builder in Switzerland. Turner and Steiner have been engaged since 1990 in construction consulting joint venture in Europe. That venture will become a part of the new company.
Alfred T. McNeill, chairman and chief executive officer of The Turner Corporation, remarked, "We are quite pleased with our expanded association with the Steiner organization,. The investment by Steiner will further strengthen our balance sheet and better enable us to serve our clients as the nation's largest general builder as we move through the 1990s as well as provide us with greater flexibility in finding a solution to finalizing our real estate problems,
"The creation of the new Turner Steiner International, with the ability to draw on the combined resources of both firms, will enable both Turner and Steiner to benefit from expanding opportunities in the growing international construction market particularly with European clients."
Based in New York, The Turner Corporation, through Turner Construction Company and its other domestic construction subsidiaries, has 34 offices nationwide. TIII, directly or through subsidiaries, currently has consulting and construction projects underway in the United Kingdom, Kuwait, Dubai, Taiwan, Singapore, Thailand, The Netherlands and Spain.
The Turner Corporation put in place approximately $2.7 billion in construction in 1991 and entered 1992 with a construction backlog of more $4.7 billion.
/CONTACT: Douglas M. Bennett, 212-229-6159, or Beverly A. Benn, 212-229-6157, both of Turner/
(TUR) CO: Turner Corporation ST: New York IN: CST SU: SH-TS -- NY019 -- 9791 02/18/92 09:34 EST