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BRAMPTON, ON, Jan. 1, 2012 /CNW/ - Data Group Inc. (TSX: DGI) announced
that The Data Group Income Fund (the "Fund") has today completed the
previously announced plan of arrangement under which the Fund's income
trust structure has been reorganized into a dividend paying public
corporation named "Data Group Inc." The Fund's unitholders approved
the plan of arrangement on May 17, 2011.
Under the plan of arrangement, holders of units of the Fund received
common shares (the "Shares") of Data Group Inc. in exchange for their
units, on a one-for-one basis. Data Group Inc. also assumed all of the
covenants and obligations of the Fund under its outstanding 6.00%
convertible unsecured subordinated debentures (the "Debentures"). On
conversion of the Debentures, debentureholders are now entitled to
receive Shares, rather than units, on the basis of one Share in lieu of
each unit of the Fund which the debentureholder was previously entitled
to receive, subject to adjustment in accordance with the terms of the
trust indenture. Data Group Inc. now has 23,490,592 common shares
outstanding. Common shares of Data Group Inc. will commence trading on
the Toronto Stock Exchange (the "TSX") on January 3, 2012 under the
symbol "DGI". The Debentures will commence trading on the TSX on
January 3, 2012 under the symbol "DGI.DB.A".
Data Group Inc. now indirectly operates the businesses which were
previously operated by the Fund's subsidiaries. The management and
trustees of the Fund are now the management and directors of Data Group
The cash distribution of the Fund of $0.0542 per unit payable on January
13, 2012 to unitholders of record on December 31, 2011 for the period
from December 1, 2011 to December 31, 2011, which was previously
announced by the Fund on December 16, 2011, will be paid by Data Group
Inc. on behalf of the Fund.
Data Group Inc. also announced that its wholly-owned subsidiary has
entered into an amended and restated credit agreement effective January
1, 2012 reflecting the changes in the Fund's corporate structure
resulting from the reorganization. The terms of the amended and
restated credit agreement are otherwise substantially similar to those
contained in the credit facility previously maintained by the Fund's
subsidiary with the same lending syndicate.
Data Group Inc. also announced that the board of directors of Data Group
Inc. has adopted a shareholder rights plan as contemplated by the
management proxy circular of the Fund dated April 14, 2011, in the form
set out in the circular. The plan was approved by the Fund's
unitholders at the annual and special meeting of such unitholders held
on May 17, 2011.
About Data Group Inc.
Data Group Inc. is a leading provider of document management and
marketing solutions. We provide integrated web and print based
communications and information management and associated professional
services. We differentiate ourselves and provide value to our customers
by focusing on innovative, high value solutions and on exceptional
performance at delivering on our promises and commitments. We have over
1,950 employees working from 33 locations across Canada to accomplish
Additional information relating to Data Group Inc. is available at our
main web site; www.datagroup.ca, our investor web site; www.datagroupincomefund.com and on the System for Electronic Document Analysis and retrieval
(SEDAR) at www.sedar.com in the disclosure documents filed by Data Group Inc. and the Fund.
SOURCE The DATA Group Income Fund
For further information:
| Mr. Michael Suksi |
President and CEO
Data Group Inc.
Tel: (905) 791-3151
| Mr. Paul O'Shea |
Chief Financial Officer
Data Group Inc.
Tel: (905) 791-3151