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Tuesday, May 24, 2022

Briefs: MRV, Signature Group

The board of directors of MRV Communications Inc. approved on Tuesday a stock repurchase program of up to $8 million. The Chatsworth telecommunications components company will use existing cash on hand to buy back common shares. The repurchase plan expires Nov. 13, 2015 and will be handled by a broker selected by the company. MRV established the plan under a Securities and Exchange regulation that allows for stock repurchasing at a time when it might otherwise not be allowed under insider-trading laws or due to self-imposed trading blackout periods. On Monday, the company announced a new chief executive: Mark J. Bonney, 60, who was hired as chief financial officer in August and has served on the board of directors since April 2013. Stephen Krulik was named his successor as chief financial officer. Shares closed up 76 cents, or nearly 8 percent, to $10.75 on the Nasdaq. Signature Group Holdings Inc. has priced its upcoming secondary stock offering at $6.50 a share, the company announced on Tuesday. The Sherman Oaks investment firm plans to sell about 4.4 million shares, which will raise $28.5 million. The money will be used for the company’s pending acquisition of an aluminum recycling business from Aleris Corp. in Beachwood, Ohio. The total price of the acquisition is $525 million, with about $300 million from a planned bond issue and some accumulated cash, in addition to the stock offering. The acquisition includes 18 metal and alloy recycling service facilities in North America and six in Europe. B. Riley & Co., the Los Angeles brokerage, is sole book-running manager for the offering. Signature is an investment holding company that buys profitable target businesses. It was established after accumulating nearly $900 million in net losses from previous ventures that can be used to shield future profits from taxes. Shares closed up 40 cents, or nearly 6 percent, to $7.10 in over-the-counter trading.

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