Zarlink issues call to redeem 966,600 convertibles for C$24.63 million

By Toni Weeks

San Diego, May 25 - Zarlink Semiconductor Inc. has issued a call to fully redeem its 1983 R&D series C$2.00 cumulative redeemable convertible preferred shares on June 27, according to an announcement. A notice of redemption will be sent to registered holders of the shares on May 26.

The redemption price is C$25.00 plus accrued dividends of C$0.4837 per share.

Currently, there are 966,600 shares outstanding, and the redemption price will total C$24,632,544.42.

"The preferred share redemption highlights our confidence in our continuing ability to generate significant cash from operations," president and chief executive officer Gary Tanner said in a press release.

"This redemption simplifies our capital structure and returns value to common shareholders by eliminating the dividend on the preferred shares, which is currently approximately C$2 million annually."

Zarlink is an Ottawa company that designs, manufactures and distributes semiconductors in Europe, Asia Pacific, the United States and Canada.

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