Sherritt to convert shares

Nickel producer and coal holding company Sherritt International (S-T) has arranged to convert the multiple-voting shares held by its chairman, Ian Delaney, into restricted voting shares of the class that trades on the Toronto Stock Exchange.

The 100 multiple-voting shares, which carry the right to elect a majority of Sherritt’s directors, will be converted to 100 single-vote shares immediately. In exchange, Delaney receives 1.4 million participation units, to be granted on Dec. 13.

The participation units have a base price equal to the weighted average trading price of Sherritt’s ordinary shares for the 20 trading days up to the date of issue. They can be exercised on three dates: one-third each on Jan. 15 of 2004, 2005 and 2006.

The conversion leaves Sherritt with a single class of voting shares, which the company will propose to redesignate as common shares at its next annual meeting.