Conwest Exploration (TSE) is making a proposal to acquire a 100% interest in two affiliate companies, Mineral Resources International (TSE) and Barons Oil (TSE). Conwest already holds a 50.5% in MRI which in turn owns 84.5% of Barons. Under a reorganization proposal, Conwest is offering MRI shareholders one class B subordinate voting share of Conwest for each 2.5 MRI shares held. An equal offer is being made to Barons shareholders for each four Barons shares held.
Conwest says the purpose of the reorganization is to enhance shareholder value for shareholders of all three companies. The MRI and Barons shareholders will gain improved liquidity via the class B Conwest share and increased dividends. MRI debenture holders will be issued new debentures convertible into class B shares of Conwest. The deal will require the approval of the majority of each company’s minority shareholders.
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