TORONTO, Aug. 7, 2015 /CNW/ - BNS 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 scheduled redemption date of September 22, 2015. The Reorganization will permit holders of Capital Shares to extend their investment in the Company beyond the redemption date of September 22, 2015 for up to an additional 5 years. The Class B Preferred Shares, Series 1 will be redeemed on the same terms originally contemplated in their share provisions on September 22, 2015. 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 September 22, 2015.
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 September 22, 2015 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 August 20, 2015. Holders of Capital Shares who retract their Capital Shares will be paid on September 22, 2015. The Reorganization will become effective provided that holders of at least 800,000 Capital Shares retain their Capital Shares and do not exercise the special retraction right.
BNS Split Corp. II is a mutual fund corporation created to hold a portfolio of common shares of The Bank of Nova Scotia. Capital Shares and Preferred Shares of BNS Split Corp. II are listed for trading on The Toronto Stock Exchange under the symbols BSC and BSC.PR.B respectively.
SOURCE BNS Split Corp. II
For further information: Please contact investor relations: BNS Split Corp. II, (416) 863-7301, E-mail: email@example.com, Web site: www.scotiamanagedcompanies.com, 40 King Street West, 26th Floor, Toronto, Ontario M5W 2X6, Tel: (416) 863-7301, Fax: (416) 863-7425