Herschel H. Segal indirectly adds stake in Le Chateau Inc
05 May '07
2 min read
Le Chateau Inc and Canada Inc a corporation indirectly controlled by Mr. Herschel H. Segal, the principal shareholder of Le Chateau, announce that the Selling Shareholder has entered into an agreement with GMP Securities L.P. for a bought deal secondary offering of 300,000 Class A Subordinate Voting Shares of Le Chateau, following the conversion of the requisite number of Class B Multiple Voting Shares of Le Chateau by the Selling Shareholder, at a price of $63.00 per share, for gross proceeds to the Selling Shareholder of $18.9 million. Le Chateau will not receive any proceeds from the offering.
The secondary offering will be offered publicly in the provinces of Quebec, Ontario, British Columbia, Alberta, Saskatchewan and Manitoba by way of a short form prospectus and on a private placement basis in the U.S. pursuant to Rule 144A and Regulation D, and internationally as permitted.
The offering is expected to close on May 18, 2007. Closing is conditional upon the signing of a definitive underwriting agreement and the satisfaction of certain other conditions.
There are currently 4,187,941 Class A Subordinate Voting Shares and 2,040,000 Class B Multiple Voting Shares of Le Chateau issued and outstanding.
Following this offering, there will be 4,487,941 Class A Subordinate Voting Shares and 1,740,000 Class B Multiple Voting Shares issued and outstanding.
Of the 2,040,000 Class B Multiple Voting Shares currently outstanding, 2,000,000shares, representing approximately 81.3% of the votes attached to all the shares of Le Chateau, are indirectly owned by Herschel H. Segal and the other 40,000 shares are owned by Jane Silverstone Segal, the Chief Executive Officer of Le Chateau.
Following this transaction, Herschel H. Segal will indirectly own 1,700,000 Class B Multiple Voting Shares, representing approximately 77.7% of the votes attached to all the shares of Le Chateau.
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