ST. CATHARINES, ON, Feb. 11 /CNW/ - Ken Fowler announced today that he
has, through his controlling interest in Ken Fowler Enterprises Limited (KFE),
entered into private agreements to acquire beneficial ownership of a total of
790,800 Units of the SIR Royalty Income Fund (the Fund) (TSX: SRV.UN) at a
price per Unit of Cdn. $10.00. The aggregate acquisition represents
approximately 14.7% of the issued and outstanding Units of the Fund.
Ken Fowler now owns, directly or indirectly, including through
affiliates, 1,369,200 Units of the Fund, representing approximately 25.6% of
the issued and outstanding Units of the Fund. A related party of Ken Fowler,
SIR Corp., also owns 1,648,544 Class A GP units of the SIR Royalty Limited
Partnership, which are exchangeable on a one-for-one basis into Units of the
Fund, representing 100% of the issued and outstanding Class A GP units. Ken
Fowler may be considered under applicable securities laws to act jointly or in
concert with SIR Corp. Ken Fowler may also be considered under applicable
securities laws to act jointly or in concert with Peter Fowler, who owns,
through Peter Fowler Enterprises Limited (PFE), 31,500 Fund Units,
representing approximately 0.6% of the issued and outstanding Units of the
Fund. As a result, Ken Fowler may be considered under applicable securities
laws to beneficially own 3,049,244 Units representing approximately 43.5% of
the Fund Units (including the Class A GP units on an as if exchanged basis).
The Fund Units were purchased for investment purposes. In particular, the
yield on the Units is considered to be attractive to KFE in order to offset
certain interest obligations it has under certain of its outstanding term
debt. Ken Fowler may make further purchases and/or sales of, or may otherwise
dispose of, Units of the Fund, as circumstances warrant. At the date hereof,
Ken Fowler has no intention of commencing a formal take-over bid or engaging
in a going private transaction to acquire Units of the Fund.
There are no relevant agreements related to the Fund Units involving Ken
Fowler other than the purchase agreements, which are short and provide for the
purchase of the Units in question by the offeror from the applicable vendors.
SIR Corp. and others are party to numerous agreements with the Fund and
related entities as described in the Fund's public disclosure documents.
Ken Fowler and KFE may be considered under applicable securities laws to
be acting jointly or in concert with Peter Fowler, PFE and/or SIR Corp.
For further information:
For further information: Greg Tremeer, Ken Fowler Enterprises Limited,
tel. (905) 688-9740, at: 110 Hannover Dr. Ste 203B, P.O. Box 24091, St
Catharines, ON, L2R 7P7