Henley Group Inc. has filed a statement with the Securities and Exchange Commission for permission to issue to shareholders a stock dividend in Henley Manufacturing Corp., an independent unit Henley is forming from its chemical and certain manufacturing operations.
One share in HMC would be issued for approximately each 20 shares of Henley stock owned, a spokesman said. Henley stockholders entitled to fractional shares will receive cash instead, he added. In cash, the stock dividend will be worth roughly $1.60 per share owned.
Through the stock dividend, Henley will spin off roughly a 45% interest in HMC to its stockholders. The company will retain control of the remainder of the HMC shares outstanding, which, after the dividend, will total 12.2 million.
Henley stock closed up 62.5 cents per share at $30.25 in over-the-counter trading Wednesday.
Based in Hampton, N.H., HMC had net income of $11.2 million on revenue of $306 million for the six months ended June 30. For 1986, the unit posted a $35.1-million loss on revenue of $656 million. The loss included a $90-million restructuring charge that was partially offset by a $35-million gain on the sale of Henley's partial interest in a Green River, Colo., soda ash mine and plant.