At the Annual General Meeting on February 26, 1999, the Chairman of Staples Holding Limited (SHL), Mr. Bill Midon, communicated to shareholders the intent of SHL to sell the operating companies, Staples Limited and Atlantic Medical International Limited (AMI), as going concerns.
Subsequent to that meeting, The Bank of Bermuda, having held the shares of Staples Limited as collateral for its loans to SHL, had those shares transferred to the Bank.
For the past three months Management has been working with the Bank to restructure the debt of Staples Limited and to find investment capital to provide the company with required financing. This acquisition accomplishes both of these objectives. In return for a substantial cash infusion, the new investors will acquire the shares of Staples Limited from The Bank of Bermuda. The transaction is due to close on or before June 11, 1999.
Staples Limited is the largest supplier of Office Equipment and Supplies to the Bermuda marketplace and represents RICOH and SHARP office equipment and 3M products on the island. This restructuring of the business provides Staples Limited with sufficient resources to renew its commitment to providing innovative solutions and service to all its customers. At this time management would like to thank all of the customers and employees of Staples Limited for their loyal support throughout this difficult period.
The new investor group would also like to announce that it will be acquiring Atlantic Medical International from SHL during the next few days. We believe that this additional purchase will add value to both companies in that it preserves the current synergy associated with running both businesses concurrently."