BCL to reduce par value of shares
shares from $10 to $1, reports the Bermuda Stock Exchange Index (BSE).
The par value reduction means the company's common share capitalisation will go from 300,000 shares with a par value of $10 to 3,000,000 shares with a par value of $1, according to Mr. Geoffrey Frith, president of Container Ship Management Ltd., manager of BCL.
"To reduce the trading price of shares, the directors felt it would increase liquidity if the par value was lowered. It is hoped this will encourage trading in Bermuda Container Line on the Bermuda Stock Exchange,'' he added.
After a general meeting, held March 30, shareholders of the ocean freight company agreed to reduce the par value of the company's common shares as of Friday.
BCL intents to issue new certificates June 30 reflecting the change while old certificates will be cancelled and worthless.
Until June 30 old certificates will be accepted as evidence of shareholding.
BCL last traded at $2.50 on January 27, 1995.