TORONTO, Aug. 5 /CNW/ - IBI Income Fund (the "Fund") (TSX: IBG.UN) today announced that at its special meeting of unitholders held earlier today, unitholders approved, with over 99 per cent of units represented voting in favour, the previously announced conversion of the Fund's income trust structure to a corporation. The conversion is being undertaken pursuant to a plan of arrangement under the Canada Business Corporations Act. Subject to the final approval of the Ontario Superior Court of Justice and other approvals, it is expected that the conversion will be effective on or about January 1, 2011. Pursuant to the conversion, unitholders of the Fund will exchange their units of the Fund for common shares of IBI Group Inc. on the basis of one common share for each unit of the Fund. IBI Group Inc. will also assume all obligations of the Fund with respect to the Fund's outstanding convertible debentures, and holders who wish to convert their convertible debentures will be entitled to receive common shares on the same conversion basis that currently applies in respect of Fund units.
The basic structure of IBI Group, which carries on the business of IBI, as a partnership with two partners will continue. Following conversion, IBI Group Inc., rather than the Fund, will hold all of the Class A partnership units of IBI Group and IBI Group Management Partnership will continue to hold all of the Class B partnership units of IBI Group.
Certain statements in this news release, including statements regarding the conversion and its effective date, constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this news release reflect management's current expectations regarding future events and speak only as of the date of this news release. Forward-looking statements involve a number of risks and uncertainties, including those described under the heading "Risk Factors" in the Fund's Annual Information Form dated March 31, 2010. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Fund cannot assure investors that actual results will be consistent with these forward-looking statements.
About IBI Income Fund
The Fund is a TSX listed income trust, which pays monthly distributions and trades under the symbol "IBG.UN". The Fund holds an indirect 71.7% in IBI Group, a partnership which, directly and through its subsidiary entities, provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. The remaining 28.3% of IBI Group is owned by IBI Group Management Partnership. On a partially diluted basis, assuming the exchange of its units of IBI Group for units of the Fund, IBI Group Management Partnership together with IBI Group Investment Partnership holds a 46.3% interest in the Fund.
SOURCE IBI Group Inc.
For further information: For further information: Philip H. Beinhaker, IBI Income Fund, 230 Richmond Street West, Toronto, Ontario, M5V 1V6, Telephone: (416) 596-1930