Bermuda Exempt Company Moving to the US

Bermuda based W.P. Stewart & Co Ltd today [Apr 6] announced that it intend to move to the United States, saying that their headquarters and all other operations presently conducted in Bermuda will be relocated to New York resulting in the loss of 5 jobs in Bermuda. The company CEO Mark Phelps gave the reason that relocating should reduce net expenses by approximately $2.5 million per year.

The company’s Board of Directors has approved the necessary steps to reorganize the Company as a Delaware corporation.

The Scheme of Arrangement will be subject to various conditions, including approval by the requisite vote of shareholders of the Company and sanctioning by the Supreme Court of Bermuda following a hearing for this purpose.

Mark Phelps, CEO of the Company, commented

Completing the Exchange Agreement and Scheme of Arrangement will be a further step along the path of simplifying the Company’s corporate structure and further reducing its underlying cost base.

By relocating the Company’s Bermuda operations and further concentrating our team in New York, we expect to be able to reduce net expenses by approximately $2.5 million per year

The Company reported a net loss of $3.8 million, or $0.72 per share (diluted) and $0.72 per share (basic), for the third quarter ended 30 September 2009. These results compare with a net loss in the third quarter of 2008 of $31.2 million, or $6.20 per share (diluted) and $6.20 per share (basic).

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