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Mining industry

Atlas Corporation Acquires Majority Stake in Phoenix Financial Holdings Inc.

Strategic Insights

— 1 min read

Atlas Corporation, a leading industrial mining company, has taken a significant step into the world of industrial minerals by purchasing a 51% stake in Phoenix Financial Holdings Inc., a Canadian holding company. The acquisition, worth $1.3 million, grants Atlas board control, with David J. Birkenshaw, Atlas' Chairman and CEO, being appointed Chairman of Phoenix, and Gary E. Davis, Atlas' President, being appointed Vice Chairman and CEO of Phoenix. Phoenix now has approximately $2.1 million in cash and other assets, setting the stage for its transformation into an operating industrial minerals company.

Key Takeaways:

  • Atlas Corporation acquired 51% of Phoenix Financial Holdings Inc.'s outstanding shares for $1.3 million.
  • Phoenix currently has approximately $2.1 million in cash and other assets.
  • Atlas assumes board control with David J. Birkenshaw as Chairman of Phoenix and Gary E. Davis as Vice Chairman and CEO of Phoenix.
  • John Leahy, a mining engineer with over 30 years of experience, has been appointed President of Phoenix.
  • Tucker Hill, the largest known domestic mineral deposit of perlite, is expected to be the cornerstone for Phoenix's development.
  • Perlite is used in construction products, filter material, and soil additives.
  • Final permits for the development of Tucker Hill are expected in February 1996.
  • The proposed transaction between Atlas and Phoenix includes the acquisition of Tucker Hill in return for a combination of cash, shares, and a retained royalty.
  • The terms of the transaction have not yet been determined and are subject to approval by an independent Phoenix board committee, minority shareholder, and regulatory approval.

Statistics:

  • 51%: The percentage of Phoenix Financial Holdings Inc.'s outstanding shares acquired by Atlas Corporation.
  • $1.3 million: The worth of the acquisition by Atlas for the majority stake in Phoenix.
  • $2.1 million: Phoenix's current cash and other assets.
  • 30+ years: John Leahy's experience in the mining industry.
  • 20 years: John Leahy's tenure at Amax, Inc. at their Climax Molybdenum Co. subsidiary.
  • 1995: The year John Leahy began acting as a consultant for Atlas on the permitting and development of the Tucker Hill Project in May.
  • February 1996: The expected month for final permits to be released for the development of Tucker Hill.

Sources:

  • PRNewswire - "Atlas Corporation Acquires Majority Stake in Phoenix Financial Holdings Inc."
  • NYSE: AZ
  • CDN: PGML.A, PGML.B

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