Samsonite holders agree to convert more than 90% of preferred stock

By Jennifer Chiou

New York, Dec. 21 - Samsonite Corp. announced its board approved a special cash distribution of $175 million, consisting of dividends on its common stock and convertible preferred stock and certain dilution adjustment payments to holders of stock options.

The Denver luggage maker said that as of Thursday, holders of more than 90% of the convertible preferreds have elected to convert their holdings into common stock.

Samsonite said that the total dividend per share of common stock will be within a range of $0.2273 and $0.2347 and the dividend per share of convertible preferred stock is $359.33. The minimum amount of dividends on the company's common stock is $164,122,676 and the maximum amount of dividends on its convertible preferreds is $5,485,172.

The company noted that if more holders of the convertible preferreds convert their securities on or prior to Jan. 3, the total dividends payable on the common stock will increase and the total dividends payable on the convertible preferred stock will decrease.

Jan. 2 is the record date for the common stock and Jan. 5 is the record date for the preferreds.

The exact amount of dividends paid on the stocks will not be known until Jan. 5.

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