Hallwood Group Announces Proposal From HFL To Acquire All
Outstanding Shares of Common Stock
DALLAS, Nov. 9, 2012 /PRNewswire/ -- The Hallwood Group
Incorporated (NYSE MRK US: HWG) (the "Company") announced today
that on November 6, 2012, the Company
received a proposal from Hallwood Financial Limited to acquire all
of the outstanding shares of common stock of the Company that it
does not beneficially own at a cash purchase price of $10.00 per share. Hallwood Financial
Limited, a private limited company organized under the laws of the
British Virgin Islands, is
controlled by the Company's Chief Executive Officer and members of
his family. Hallwood Financial Limited owns 1,001,575, or 65.7%, of
the outstanding shares of the Company.
On November 7, 2012 at the
Company's regularly scheduled board of directors meeting, a special
committee, consisting of its independent directors, was formed to
consider and negotiate the proposal and to make a recommendation to
the full board of directors. The special committee is empowered to
retain its own independent legal and financial advisors to assist
in its review and negotiation of the proposed transaction. The
Company's shares trade on the NYSE MKT stock exchange under the
symbol of HWG and closed on November 5,
2012 (the day prior to the receipt of the offer) at
$6.00 per share.
The board of directors cautions the Company's shareholders and
others considering trading in its securities that it has only
received the proposal and that no decision has been made with
respect to the Company's response to the proposal. There can
be no assurance that any offer will be accepted, that any agreement
will be executed or that the transaction contemplated in the
proposal or any other transaction will be approved or
consummated. The Company does not anticipate making any
further public statements about this matter or the activities of
the special committee unless and until either it enters into a
definitive agreement for a transaction or the special committee
determines that no such transaction will be effected.
SOURCE The Hallwood Group Incorporated