Sea Containers Approves Hotel Subsidiary Spin-Off

Sea Containers Ltd., which runs marine passenger transport and leases equipment, on Friday said its shareholders approved resolutions to permit the spin-off of its luxury hotel subsidiary Orient-Express Hotels Ltd.

Sherwood also said net income at Sea Containers for the first half of 2001 should top that of the prior year's first-half, while Orient-Express Hotels expects to report higher earnings for 2001 than for 2000.

Sea Containers' president James Sherwood said it was still the company's intention to divest the majority of its shares in Orient-Express around the end of the year. Before that time, the company plans to sell about 5 million shares, in blocks. Hamilton, Bermuda-based Sea Containers said it could sell about 6.6 million shares without threatening the spin-off's tax-free status. It said it will use proceeds of the sale of 5 million shares to cut down on debt and increase capital.