(TSX: SCL.A, SCL.B)
TORONTO, April 18, 2012 /PRNewswire/ - SHAWCOR LTD. (TSX: SCL.A, SCL.B) today announced changes in the shareholdings of Fineglade Limited and related arrangements. Fineglade Limited, which currently holds about 96% of the outstanding shares of Socotherm S.p.A, was owned 40% by ShawCor Ltd., 30% by Sophia Capital and 30% by 4D Global Energy Investments. 4D Global Energy Investments has sold its interest in Fineglade to Sophia Capital. Fineglade Limited is now owned 40% by ShawCor Ltd. and 60% by Sophia Capital.
ShawCor and Sophia Capital have agreed on certain arrangements that will govern Fineglade pursuant to which ShawCor has provided a €45 million secured loan to Sophia Capital due in 2013. Under these new arrangements, Socotherm will have a five person Board of Directors, ShawCor will have two nominees to the Board and ShawCor and Sophia Capital have entered into a put and call agreement whereby, commencing in 2013 and continuing for two years, Sophia Capital could require ShawCor to purchase Sophia Capital's 60% interest in Fineglade and ShawCor could require Sophia Capital to sell such interest to ShawCor at a formula price based, in part, on events transpiring throughout the remainder of this year.
Socotherm S.p.A., headquartered in Italy, is an international pipe coating contractor primarily serving the oil and gas industry from active operations in Brazil, Argentina, Venezuela, the Gulf of Mexico and Italy.
ShawCor Ltd. is an energy services company specializing in products and services for the pipeline and pipe services and the petrochemical and industrial segments of the oil and gas industry. The company operates through seven divisions with over seventy manufacturing and service facilities located around the world.
This news release may contain forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify forward-looking information. This forward looking information is based on assumptions, estimates, and analysis made in the light of the company's experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the company to be reasonable and relevant in the circumstances. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed, or implied by the forward-looking information. The risks and uncertainties include, among other things, changes in global economic activity and changes in energy supply and demand which impact on the level of drilling activity and pipeline construction; political, economic and other risks arising from international operations; compliance with environmental, trade and other laws; liability claims; fluctuations in foreign exchange rates and fluctuations in raw material prices, as well as other risks and uncertainties that are more fully described in the company's Annual Information Form, annual and quarterly reports and other reports and filings made with securities regulatory authorities and available at www.sedar.com.
SOURCE ShawCor Ltd.