MUSCATINE, Iowa (June 19, 2002) – Bandag Inc. is spending $40.2 million to buy 1.11 million shares of its Class B common stock and 418,371 shares of its Class A common stock from Lucille A. Carver, widow of Bandag founder Roy J. Carver Sr.
The purchase leaves Mrs. Carver with no ownership stake in the company and reduces the Carver family's stake to about 64 percent from 78 percent, Bandag said. Martin G. Carver, chairman, president and CEO of Bandag, and Bandag Board Member Roy J. Carver Jr. will have sole voting power of approximately 28 and 22 percent, respectively, and the brothers share voting power over 14% of Bandag´s total voting power.
The repurchased shares will be held in treasury, the company said. Bandag paid $27.04 per share for the Class B and $24 per share for the Class A shares.
The authority to purchase the shares was approved two years ago by the board of directors. That stock purchase authorization still covers about 1.01 million shares, Bandag said.