ShawCor Ltd. - Transaction with Avdell Holdings Inc.

SHAWCOR LTD.
(TSX: SCL.SV.A, SCL.MV.B)

TORONTO, Oct. 4 /CNW/ - ShawCor Ltd. ("ShawCor") announced today that it
has completed a transaction with its controlling shareholder, the Leslie E.
Shaw family. As a result of this transaction, ShawCor acquired certain private
companies owned by the Leslie E. Shaw family, which companies owned 10,304,685
Class B Multiple Voting Shares of ShawCor, and in consideration therefore
issued an equivalent number (10,304,685) of Class B Multiple Voting Shares to
the family.
The purpose of the reorganization was to facilitate estate planning
objectives of the Leslie E. Shaw family, and all of the costs of the
reorganization will be borne by them.
ShawCor's board of directors formed an independent committee (the
"Independent Committee") of the board to review, among other matters, the
proposed terms of the reorganization and to make a recommendation to the board
of directors of ShawCor regarding its implementation. The Independent
Committee retained counsel to advise on this matter. Based upon its review of
the reorganization and the definitive agreements, the Independent Committee
concluded and recommended to the board that it was reasonable and appropriate
for ShawCor to proceed with the transaction.