TORONTO, Jan. 7, 2013 /CNW/ - Allbanc Split Corp. (the "Company")
announced today that the final condition required to extend the term of
the Company for an additional five years to March 9, 2018 has been met
as holders of 85.6% of Class A Capital Shares have elected to extend.
Holders of Class A Capital Shares on December 13, 2012 approved the
extension of the term of the Company subject to the condition that a
minimum of 361,000 Class A Capital Shares remain outstanding after
giving effect to the special retraction right (the "Special Retraction
Under the Special Retraction Right, 104,212 Class A Capital Shares were
tendered to the Company for retraction on March 8, 2013. The holders
of the remaining 617,252 Class A Capital Shares will continue to enjoy
the benefits of a leveraged participation in the capital appreciation
of the Company's portfolio of publicly listed common shares of Bank of
Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada, The
Bank of Nova Scotia and The Toronto-Dominion Bank while potentially
deferring any capital gains tax liability which would otherwise be
realized on the redemption of their Class A Capital Shares.
The Company's Class B preferred shares will be redeemed by the Company
on March 8, 2013 in accordance with the redemption provisions as
detailed in the Company's March 3, 2008 prospectus. Pursuant to these
provisions, the Class B preferred shares will be redeemed at a price
per share equal to the lesser of $26.75 and the Unit Value. In order
to maintain the leveraged "split share" structure of the Company, the
Company intends to create and issue a new series of Class C preferred
shares, which are expected to be issued following this redemption. In
addition, the Company may also undertake a concurrent public offering
of additional Class A Capital Shares at the same time the Class C
preferred shares are offered.
Capital Shares and Class B preferred shares of Allbanc Split Corp. are
listed for trading on the Toronto Stock Exchange under the symbols
"ABK.A" and "ABK.PR.B", respectively.
SOURCE: Allbanc Split Corp.
For further information:
Allbanc Split Corp.
Telephone: (416) 945-4171
Web site: www.scotiamanagedcompanies.com