Dearborn-Storm To Concentrate On Offshore Drilling Industry —Computer Leasing To Be Sold

Dearborn-Storm Corporation has announced that an agreement in principle has been reached with a group of private investors in Chicago for the sale of Dearborn's portfolio of IBM System 360 computers for $17 million in cash payable at the closing.

This transaction, to be reflected in fiscal 1973, will result in a loss on disposal of the computer portfolio, including phase-out costs, of approximately $9.0 million ($3.15 per share), net of applicable tax benefits of approximately $4.2 million.

Arthur Weiss, chairman of the board of directors, stated that "divestiture of our interests in the computer leasing business now allows us to concentrate all of our management efforts and financial resources on our primary business, which is servicing the worldwide needs of the offshore petroleum industry." Reflecting this concentration of Dearborn's interests in servicing the offshore petroleum industry, Dearborn's board of directors approved a change of the corporate name to Storm Drilling & Marine, Inc., subject to approval by the stockholders at the annual meeting to be held in Houston, Texas, on April 9, 1974. The chairman also stated that proceeds from the sale of the computer portfolio would be used to further expand the company's offshore service capabilities.

Dearborn currently has under construction drilling rigs and marine service vessels with an aggregate cost of approximately $75 million.

Maritime Reporter Magazine, page 35,  Mar 1974

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First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.