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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 01, 1999
THE LOEWEN GROUP INC.
(Exact name of registrant as specified in its charter)
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British Columbia, Canada 0-18429 98-0121376
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(State or other jurisdiction of (Commission File Number) IRS Employer Identification No.)
incorporation)
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4126 Norland Avenue, Burnaby, British Columbia V5G 3S8
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(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code 604-299-9321
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N/A
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(Former name or former address, if changed since last report)
Exhibit Index is on page 3
Page 1 of 6
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ITEM 5. OTHER EVENTS.
Pursuant to Form 8-K, General Instructions F, registrant hereby incorporates by
reference the press release attached hereto as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
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Exhibit No. Description
Exhibit 99 The Loewen Group Inc. Press Release dated March 01, 1999
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: March 5, 1999
THE LOEWEN GROUP INC.
By: /s/ BRADLEY D. STAM
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Name: Bradley D. Stam
Title: Senior Vice President, Law
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EXHIBIT INDEX
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Sequential
Number Exhibit Page Number
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99 The Loewen Group Inc. 4
Press Release dated March 1, 1999
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[THE LOEWEN GROUP INC. LETTERHEAD]
(NYSE, TSE, ME: LWN)
NEWS
Contact:
Thomas C. Franco
Broadgate Consultants, Inc.
Tel: (212) 232-2222
FOR IMMEDIATE RELEASE
LOEWEN GROUP ANNOUNCES CEMETERY ASSET SALE TO
INVESTOR GROUP
FOURTH QUARTER RESULTS UPDATE
_________________________________________
VANCOUVER, BC, March 1, 1999 -- The Loewen Group (NYSE, TSE, MSE: LWN) announced
today a definitive agreement to sell certain cemetery properties to an investor
group led by McCown De Leeuw & Co., a private investment firm specializing in
buying and building middle market companies in partnership with management. The
transaction is valued at approximately $193 million.
Commenting on today's announcement, John S. Lacey, Chairman of the Board said:
"Loewen is embarked on a two-pronged strategy to maximize shareholder value.
First, we are taking steps to improve profitability and reduce negative cash
flow from operations. The second initiative, which is reflected in today's
announcement, includes selective asset sales to reduce debt. Loewen continues
discussions with other interested parties concerning additional asset sales."
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The transaction includes 124 cemetery properties in Connecticut, Delaware,
Maryland, New Jersey, Pennsylvania, Rhode Island, Virginia and West Virginia, as
well as three funeral homes located on cemeteries involved in the sale. The
transaction, which is subject to certain closing conditions, is expected to
close by April. In addition to McCown De Leeuw & Co., the investor group
includes former Loewen executives Lawrence Miller and William R. Shane.
In addition, Loewen announced that it expects to report its fourth quarter and
full-year 1998 financial results in late March. Based on preliminary
information, Loewen expects to report an operating loss for the quarter. The
Company also said it expects to incur substantial charges related to the
strategic process, the closing of the Philadelphia accounting office, this asset
sale and continued examination of the Company's assets in light of its current
operating and asset reduction strategies.
The Company also noted that its effective tax rate on operating earnings may
increase in 1999 and will likely further increase in 2000 and later years due to
the cessation of the Company's acquisition program, recent operating results and
the effect of any asset sales.
The Loewen Group Inc. is the second largest funeral home and cemetery operator
in North America. The Company employs approximately 16,000 people and owns or
operates more than 1,100 funeral homes and over 500 cemeteries across the United
States, Canada and the United Kingdom. Over 90 percent of the Company's revenue
is derived from the United States.
The Loewen Group's website is located at http://www.loewengroup.com
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