The Chairman also noted that the Board had agreed to pay the regular quarterly dividend of 60¢ on April 15 to shareholders of record as at the close of business March 31.
The Board further agreed that, coincidental with the issue of the Notes, the dividend rate on Common Shares would be reduced from the present level of 60¢ to 50¢ per quarter, commencing with the quarter ending June 30, 1997.
The Chairman noted that a dividend of $15.00 per share in the form of Notes was taken in recognition that the current market value at which shares have been trading on the local exchange does not reflect the underlying value of such shares or the present level of earnings and yield. He further noted that the depreciated book Value of the shares is at least 33% higher than that which the market capitalization of the Company reflects.
The Chairman stated that he feels the Notes will not only increase the return to shareholders, but will also encourage the shareholders to recognize the value of the shares in a more tangible way and be able to trade them at a more realistic price. He hopes that the shareholders appreciate the steps taken by the Board to recognize the real value of the Company's shares.