American Pacesetter Planning to Reorganize Into 3 Companies

In an effort to streamline operations, officials of American Pacesetter, a Newport Beach holding company, Monday announced plans to reorganize into three independent and publicly held companies.

The company said the residential and commercial real estate operations will be broken off and made into two separate corporations. Shareholders will then receive one share of Pacesetter Homes Inc. stock and one share of Pacesetter Business Properties stock for each share of American Pacesetter stock they currently own.

The stocks of the three companies will then be traded independently.

The three reorganized companies will consist of American Pacesetter, which will assume all operations of San Clemente Savings & Loan Assn., as well as all banking business now conducted by Woodleaf Mortgage Co.; Pacesetter Homes, which will include all residential development, and Pacesetter Business Properties, which will conduct all commercial development.

Jean Meronk, chief financial officer, said the main reasons for the reorganization were to improve management efficiency and to “allow the financial markets to better recognize and evaluate the individual merits of each company.”

Meronk said the reorganization is contingent upon approval by the Securities and Exchange Commission as well as final approval by company shareholders.

If approval is granted, she said, the reorganization should take place during the second quarter of 1988.