Shawcor Calls Off Sale After Buying Back Shaw Shares

Shawcor Ltd. (SCL/A), which provides coatings and other services to the pipeline industry, is no longer looking to sell itself after buying back the shares of its chairman, who announced her resignation today.

Chairman Virginia Shaw and Vice Chairman Leslie Hutchison won’t stand for re-election to the Shawcor board at the May 16 annual meeting, the Toronto-based company said today in a statement. In September, shares rose the most in the company’s history after Shawcor announced it was considering selling itself. Shaw, the largest shareholder at the time through a holding company, said she was prepared to sell her shares as part of the proposed sale.

On March 20, the company consolidated its two-class share structure and bought back Shaw’s stake, Chief Financial Officer Gary Love said today in a telephone interview.

“The resignations of Virginia Shaw and Les Hutchison are really a direct consequence of the action the company completed on March 20,” Love said. “The announcement back in September is really superseded by the transaction in March.”

The shares fell 2.9 percent to C$38.85 at 2:45 p.m. in Toronto.

Shaw was elected board chairman in 2007, following the death of her father, Leslie Shaw.

To contact the reporter on this story: David Wethe in Houston at dwethe@bloomberg.net

To contact the editor responsible for this story: Tina Davis at tinadavis@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.