The effect of the stock split will be to increase the number of outstanding shares of the company from approximately 4.55 million to approximately 9.1 million shares. The board's action follows an amendment to the company's articles of incorporation, approved by a majority of shareholders, which increased the number of authorized common shares from 7.5 million to 17.5 million shares. "The stock split is in response to the increase in the market price of United Capital's common stock over the last several months and should lead to wider ownership and improved liquidity for all shareholders," notes A.F. Petrocelli, chairman of United Capital Corp.
In June, United Capital's board approved a special cash dividend of $2 per common share as a one-time cash dividend payable on July 10 to all shareholders of record as of June 20. "The long-term strategy of the company is still centered on growth, but with only limited real estate opportunities available and as a result of the tremendous financial success attained in the last several years, this special dividend is in the best interest of all shareholders at this time," Petrocelli said at the time.
United owns and manages real estate and through subsidiaries in addition to providing engineered products to industrial and automotive markets worldwide.
In January, United and Prime Hospitality Corp. completed a joint purchase of the full-service Holiday Inn Select Hotel, located in Quebec City for an undisclosed selling price. The property will be managed by Prime Hospitality Corp. In March, United and Prime each sold a 10% share in the Holiday Inn Select Hotel, located in Quebec City, Quebec, Canada, to a subsidiary of Ark Investment Partners LP for an undisclosed price. Prime Hospitality Corp manages the 238-room hotel, which was built in 1975. The property has recently benefited from significant renovations focused on guestrooms, the front lobby and common areas. The 18-story hotel is located in Old Quebec City's Saint-Roch District, which has been the subject of over $330 million (CDN) of investment since 1992 as the city continues its major urban renewal initiatives.
Last December, United and Prime completed a joint acquisition of the Sheraton Meadowlands Hotel and Conference Center in East Rutherford, NJ, for an undisclosed price. The hotel operates under the Sheraton flag and is managed by Prime Hospitality Corp.
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