GRAND CAYMAN, Cayman Islands, Dec. 17 /PRNewswire/ -- Chandler Insurance
Company, Ltd., (Nasdaq: CHANF), the parent of subsidiary companies based in
Oklahoma, today announced that on December 17, 1999 it acquired 1,471,700
shares of its ownstock previously owned by affiliates of CenTra, Inc.
(CenTra) in exchange for payment of $10,105,625 (approximately $6.87 per
share). This repurchase follows a December 9, 1999 transaction in which
Chandler purchased 517,500 shares for $5,099,133 ($9.85 per share). All
shares will be cancelled when formally transferred.
The acquisitions were made to implement orders by a U.S. District Court in
Nebraska (Nebraska Court). The Nebraska Court had ordered CenTra to divest
all shares of Chandler owned or controlled by it or its affiliates. The
CenTra owned shares represented approximately 45.1% of Chandler shares
outstanding at the time. The repurchase of these shares will reduce the total
number of outstanding common shares from 6,941,708 before the December 9, 1999
repurchase to 4,952,508 after today's repurchase and cancellation of the
shares and will reduce shareholders' equity by approximately $10.1 million.
Based on an April 22, 1997 judgment by an Oklahoma Federal Court, Chandler had
already recorded the return of the 517,500 shares as a decrease to
shareholders' equity during the first quarter of 1997.
A third share block owned by CenTra and affiliates consisting of 1,142,625
shares will be divested following a ruling on CenTra's appeal of a judgment
entered by an Oklahoma Federal Court in April 1997. That judgment requires
CenTra to transfer the shares to Chandler in exchange for payment of
$6,882,500. Following the conclusion of the appeal, the Nebraska Court will
determine the method of divestiture of these shares. Full implementation of
NAICO's divestiture plan will result in the repurchase and cancellation of
3,131,825 shares and will reduce the total number of shares outstanding from
6,941,708 before the first repurchase to 3,809,883 following completion of all
phases of the plan.
Brent LaGere, Chairman of the Board and Chief Executive Officer of
Chandler, said: "This transaction is one more step in the implementation of
the plan NAICO proposed to the Nebraska Court. We look forward to the final
stage of the divestiture of all CenTra ownership following the conclusion of
CenTra's appeal of the Oklahoma Federal Court's judgment."
Mr. LaGere indicated that he was unable to predict when that appellate
court ruling might occur. The appellate court heard oral argument on
November 15, 1999 but has not yet given any indication as to when it will rule
on the appeal.
Cautionary Statement
Some of the statements made in this News Release, as well as statements
made by the Company in periodic press releases, oral statements made by the
Company's officials to analysts and shareholders in the course of
presentations about the Company and conference calls following earnings
releases, constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
such as subsequent court rulings or other developments in the ongoing
litigation described above.
For further information on Chandler Insurance toll-free via fax,
dial 800-PRO-INFO, follow the voice menu prompts and enter the company code
032 on any touch tone phone or visit the Chandler page on FRB's web site at
http://www.frbinc.com .
SOURCE Chandler Insurance Company
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Related links:
http://www.frbinc.com
CONTACT:
Steve Butler, V.P.-Administration,
Chandler-Cayman, 345-949-8177, Mark Paden, Exec. V.P. & CFO,
Chandler-USA, 405-258-4228, or General, Mike Arneth,
312-640-6734, or marneth@frb.bsmg.com, Investors-Media, Paul
Scheeler, 312-640-6742, or pscheele@frb.bsmg.com, all of The
Financial Relations Board for Chandler Insurance Company
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