Great Eastern Plans to Redeem Preference Shares



    HALIFAX, Aug. 12 /CNW/ - The Great Eastern Corporation Limited (TSXV:
GTN.PR.A-X and GTN.PR.B-X) has entered into an amalgamation agreement with its
subsidiary, The North Eastern Corporation Limited which, if approved by
shareholders, is intended to result in the redemption of all of the issued and
outstanding voting preference shares of Great Eastern, being redeemed at a
price of $10 per share plus accrued and unpaid dividends.
    Great Eastern currently has outstanding 40,000 5.5% voting preference
shares and 20,000 4.5% voting preference shares, each of which are listed on
the TSX Venture Exchange. These preference shares are currently not redeemable
and have a par value of $10. As a result of the amalgamation, the 5.5% voting
preference shares and 4.5% voting preference shares will be replaced by new
classes of voting preference shares that will be redeemable by Great Eastern
at $10 per share plus accrued and unpaid dividends. Great Eastern intends to
seek shareholder approval for the amalgamation at a meeting which has been
called for October 27, 2009. Upon approval, Great Eastern intends to
amalgamate with North Eastern and redeem the voting preference shares shortly
after.
    The 5.5% voting preference shares currently have a bid price of $5.50 and
an asking price of $7.50, and were last traded on August 7, 2009 at a price of
$5.50. The redemption price represents a premium of 81.8% over the last
trading price of the 5.5% preference shares. The 4.5% voting preference shares
currently have no bids and no asks, and were last traded on May 20, 2008 at a
price of $5.25. The redemption price represents a premium of 90.5% over the
last trading price of the 4.5% preference shares. Both classes of shares
provide for a fixed dividend rate, and on any return of capital are solely
entitled to their par value.

    The Great Eastern Corporation Limited is an investment holding company
with its head office in Halifax, Nova Scotia. At its year end of July 30,
2008, Great Eastern and its subsidiary, North Eastern, had assets with a book
value of $102 million.

    Forward Looking Statements

    This document contains forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
including economic conditions which may cause the actual results, performance
or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements. The completion of the proposed amalgamation and redemption is
subject to regulatory and shareholder approval. The Company specifically
disclaims any obligation to update these forward-looking statements, except as
required by applicable securities laws. There is no guarantee that
forward-looking statements will prove to be accurate and readers should not
place undue reliance on forward-looking statements.

    
    The TSX Venture Exchange Inc. has in no way passed upon the merits of the
    proposed transaction and has neither approved nor disapproved the
    contents of this press release. The transactions described in this
    release remain subject to approval of the TSX Venture Exchange.
    




For further information:

For further information: Fred Fountain, President, The Great Eastern
Corporation Limited, (902) 423-8414

Organization Profile

GREAT EASTERN CORPORATION LIMITED

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