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 “The announcement back in September is really superseded by the transaction in March.”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.
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