Beneficial Holdings, Inc. Withdraws Offer for Thunderbird Resorts
Based on Violations of the Offer T
(Thomson Reuters ONE) - MANAGUA, NICARAGUA--(Marketwire - October 05, 2009) - BeneficialHoldings, Inc. (PINKSHEETS: BFHJ), a casino investment and managementholding company, announces pursuant to Section 7.1(b) of the DutchTakeover Decree that it will not submit an offering to theNetherlands Authority for the Financial Markets for approval.Specifically, Beneficial was willing to pay $2.12 per share ofThunderbird Resorts Inc. ("TBIRD") and one BFHJ share for every tenTBIRD shares. The offer stated that it would be withdrawn if TBIRDengaged in any share dilution in excess of 20%.At the time of the offer, TBIRD maintained less than 20,000,000ordinary shares trading at a price around $1.00. At $2.12 per share,Beneficial's offer valued TBIRD under $50,000,000.However, TBIRD recently filed an offering to sell 75,000,000 sharesat approximately $1.00 each. This would leave TBIRD with nearly95,000,000 shares. While an investment of $75,000,000 would provide80% control, it is far above the price we offered.There are three reasons why Beneficial will not participate in theoffering or increase its offer at this time. First, Beneficial doesnot believe that TBIRD can justify a $75,000,000 price for 80%control. Second, Beneficial believes that the offering unfairlydilutes current TBIRD investors and may create investordissatisfaction. Under our offer, TBIRD's shareholders would havereceived $2.12. If we participated in TBIRD's counter-offering, thecurrent shareholders would receive nothing and the market value oftheir stock could plummet due to dilution. Third, we would requireadditional funding sources to invest over $50,000,000 in TBIRD.As Beneficial believes that TBIRD's dilution may cause a diminishedmarket price, we will continue to monitor the market. If TBIRD'smarket capitalization falls under $50,000,000, we may reevaluate thesituation.Beneficial will now focus its financial resources on otheracquisitions already targeted while pursuing additional gaminglocations in Central America.This press release does not constitute an offer of securities forsale. It contains forward-looking statements within the meaning ofSection 27A of the Securities Act of 1933 and Section 21E of theSecurities Exchange Act of 1934. These statements involve risks anduncertainties that could cause results to differ. Statements arebased on information available as of the date hereof, and the companyundertakes no obligation to update any statement to reflectoccurrences after the date of this release.Contact:Investor RelationsBeneficial Holdingswww.beneficialholdings.info(702) 522-1527This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 05.10.2009 - 07:10 Uhr
Sprache: Deutsch
News-ID 6541
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Based on Violations of the Offer T"
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