Shareholders Ok Reverse Stock Split

Shareholders in a subsidiary of Metropolitan Mortgage & Securities Co. Inc. Monday approved a reverse stock split intended to reduce administrative costs.

Reuel Swanson, corporate secretary for Metropolitan and Consumers Group Holding Co., said the transaction will exchange 2,500 old shares of Consumers for one new one.

Shareholders left with less than one full share will be cashed for a price determined by an independent appraiser.

Swanson said the split will affect about 40 shareholders who owned less than 1 percent of all the Consumers shares outstanding.

Metropolitan, a closely held Spokane finance and development company, owns the bulk of the stock, he said.

Consumers is the holding company for Western United Life Assurance Co., Metropolitan’s largest subsidiary, and Consumers Insurance Co.

Swanson said reverse splits have also been used to streamline administration costs at Spokane Mortgage, which is largely inactive, and Metropolitan of Alaska.

One shareholder indicated he may seek another appraisal of his stock’s worth before accepting a settlement, Swanson said.

The split will be made when amended articles of incorporation are filed, he said.