TORONTO, Dec. 11, 2015 /CNW/ - Allbanc Split Corp. II (the "Company") announced today that holders of its Class A Capital Shares ("Capital Shares") have overwhelmingly approved a share capital reorganization (the "Reorganization") allowing holders of Capital Shares, at their option, to retain their investment in the Company after the redemption date of February 26, 2016. The Reorganization will permit holders of Capital Shares to extend their investment in the Company beyond the redemption date of February 26, 2016 for an additional five years. The Class B Preferred Shares, Series 1 will be redeemed on the same terms originally contemplated in their share provisions on February 26, 2016. In order to maintain the leveraged "split share" structure of the Company, the Company expects to create and issue a new series of Class B preferred shares on or about February 26, 2016.
Holders of Capital Shares electing to retain their investment in the Company will continue to enjoy the benefit of a leveraged participation in the capital appreciation of the Company's portfolio while potentially deferring any capital gains tax liability which would otherwise be realized on the redemption of their Capital Shares.
Holders of Capital Shares who do not wish to continue their investment in the Company after February 26, 2016 must give notice that they wish to exercise their special retraction right and how they wish to be paid for their shares on or prior to December 29, 2015. Holders of Capital Shares who retract their Capital Shares will be paid on February 26, 2016. The Reorganization will become effective provided that holders of at least 1,000,000 Capital Shares retain their Capital Shares and do not exercise the special retraction right.
Allbanc Split Corp. II is a mutual fund corporation created to hold a portfolio of publicly listed common shares of selected Canadian chartered banks. Capital Shares and Preferred Shares of Allbanc Split Corp. II are listed for trading on The Toronto Stock Exchange under the symbols ALB and ALB.PR.B respectively.
SOURCE Allbanc Split Corp. II
For further information: Investor Relations, Allbanc Split Corp. II, Telephone: (416) 863-5930, E-mail: email@example.com; Web site: www.scotiamanagedcompanies.com