Sherritt restructures into two entities

Toronto-listed Sherritt has raised $341 million through a rights offering in spinoff company Sherritt International.

Shareholders received one transferable right for each Sherritt share held. One transferable right plus $5 entitled the holders to subscribe for one exchange certificate. The rights expired Dec 19, 1995.

The exchange certificates will be exchangeable between May 19 and June 19, 1996, on a 1-for-1 basis, into restricted voting shares of newly created Sherritt International. There are 71.8 million exchange certificates outstanding, and these trade on the Toronto Stock Exchange.

As a result of the rights offering, which was oversubscribed, Sherritt has been restructured into two distinct public companies: Sherritt and Sherritt International.

Alberta-based Sherritt is Canada’s largest producer of nitrogen and phosphate fertilizer, with annual production exceeding 3 million tonnes. It also holds interests in Canadian oil and gas assets, as well as industrial materials and technology businesses.

Toronto-based Sherritt International owns cobalt-nickel mining and refining assets in Cuba and Canada. It also owns oil and gas assets in several countries, tourism and agricultural investments, and an engineering and metallurgical business.