Millstreet plans sharing offering
SASKATOON (Staff) – Millstreet Development Corp. of Regina has announced its intention to undertake a $3-$4 million share offering to pursue unnamed corporate acquisitions.
At the same time, Millstreet announced unrelated plans to form a partnership with an unnamed company in Iowa.
Doug Mutschler, Millstreet chief financial officer, said Oct. 4 the plan is to have a Calgary company underwrite the offering. A prospectus outlining the deal could be ready before the end of the year.
He said Millstreet wants to diversify its current operations of industrial metal fabrication and maintenance and agricultural equipment.
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The deal with the Iowa company would see the partners form a new company called MillTech Industrial Services Inc. It would build a plant in Iowa for metal fabrication and maintenance with major industrial customers.
The announcements spurred interest in Millstreet shares on the Alberta Stock Exchange. The price closed at 65 cents Oct. 4, up from about 40 cents early in the week.
CN Rail revenues up
WINNIPEG (Reuter) – Canadian National Railway Co. is on track to improving its fiscal performance in coming years as revenues are forecast to grow above 2.2 percent a year while the railway trims staff and sheds track, said Paul Tellier, the firm’s president and chief executive.
Second quarter earnings per share in fiscal 1996 reached $1.47 compared to $1.15 in the same period in 1995. Standard and Poors has assigned the firm a triple-B rating.
Beatrice to reorganize
TORONTO (Reuter) – Privately held Beatrice Foods Inc. has filed a reorganization plan under Canadian creditor protection laws and will ask holders of its $204 million series of debentures to approve the plan.
Beatrice said it will convert its subordinated debt into common equity to significantly reduce debt and put the company into new ownership.
“Under the plan, approximately $45 million of new equity will be raised through a fully backstopped rights offering,” said Beatrice, which owns dairy, cheese and bakery plants.
