HALIFAX, Oct. 1 /CNW/ - I.M.P. Group Limited ("IMP") commented today on recent actions by the Board of Directors of Vector Aerospace Corporation ("Vector"). As Vector's largest shareholder, IMP continues to hold Vector and its management in high regard. However, IMP is disappointed that Vector's Board has authorized the issuance of up to 8,165,000 new common shares of Vector at a price of $6.35 per share, substantially diluting Vector's existing shareholders. The Vector Board's actions have materially eroded Vector's earnings per share which, together with the existing substantial blocks of Vector shares available for purchase, can be expected to put downward pressure on the stock price.
IMP noted in its September 28, 2009 press release that its intention to proceed with an offer for additional Vector shares at a price no less than $6.52 was predicated on, among other things, Vector's Board taking no unnecessary actions which are dilutive to Vector's shareholders. Although the proposed offer has not been withdrawn, the new Vector share issuance at $6.35 per share is dilutive, and as such IMP's floor price of $6.52 is no longer applicable. IMP is assessing its alternatives with respect to any further investment in Vector.
I.M.P. Group Limited is focused on global, sustainable growth, with 3,500 experienced employees delivering services, quality and value to its customers globally across diverse sectors such as aerospace, aviation, airline, healthcare, industrial, marine, information technology, hotels and property development.
SOURCE IMP Group Ltd.