GRAND RAPIDS, Minn. (Feb. 24)—ASV Inc., a manufacturer of rubber-tracked undercarriages and vehicles, has repurchased a warrant issued in 2000 for more than 8.7 million shares of its stock held by construction and farm vehicle maker and ASV customer Caterpillar Inc.
ASV late last month repurchased the warrant at 88 cents per share, or about $7.2 million, plus 500,000 shares of the company's common stock. The transaction eliminates any future shares that could have been issued under the warrant and Caterpillar's opportunity to acquire majority ownership through terms of the warrant, ASV said.
However, Caterpillar can increase its ownership in Grand Rapids-based ASV by purchasing company shares on the open market. The Peoria, Ill.-based firm owns 3,140,069 shares, or 24.9 percent, of 12,619,700 outstanding ASV common shares.
Via the repurchase agreement, ASV eliminated potential future dilution that would have resulted if the warrant remained outstanding, the company said. This move is expected to increase the company's anticipated diluted earnings per share for 2004 to between 95 cents and $1.17, up from the previously announced 85 cents to $1.05.