WINNIPEG, May 13 /CNW/ - New Flyer Industries Inc. (TSX:NFI.UN) ("New Flyer" or the "Company"), the leading manufacturer of heavy-duty transit buses in Canada and the United States, announced that at the annual and special meeting of the shareholders held today its shareholders approved the issuance of income deposit securities ("IDSs") in exchange for the remaining Class B and Class C common shares of New Flyer's subsidiary, New Flyer Holdings, Inc. ("NFL Holdings") indirectly held by certain current and former members of New Flyer management (the "Retained Interest Conversion").
Upon the completion of the Retained Interest Conversion, the current and former management holders are expected to receive, in the aggregate, approximately 2.1 million IDSs, representing approximately 4% of the outstanding IDSs. Accordingly, the aggregate percentage ownership interest held by these holders in New Flyer's business will remain substantially unchanged. The precise number of IDSs to be issued will be determined in a manner consistent with the securityholders agreement of NFL Holdings and will vary based on the exchange rate between Canadian and US dollars at the time the transactions are completed.
The Company intends to complete the Retained Interest Conversion by the end of the second quarter or during the third quarter of 2010, once all other conditions to the transaction have been met.
New Flyer's shareholders also approved the re-election of the current seven members to the Company's board of directors and the re-appointment of Deloitte & Touche LLP as auditors of the Company.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada. The Company's three facilities -- in Winnipeg, MB, St. Cloud, MN and Crookston, MN - are all ISO 9001, ISO 14001 and OHSAS 18001 certified. With a skilled workforce of over 2,000 employees, New Flyer is a technology leader, offering the broadest product line in the industry, including drive systems powered by clean diesel, LNG, CNG and electric trolley as well as energy-efficient gasoline-electric and diesel-electric hybrid vehicles. All products are supported with an industry-leading, comprehensive parts and service network. The Company's income deposit securities are traded on the Toronto Stock Exchange under the symbol NFI.UN. Further information is available on Company's web site at www.newflyer.com.
This press release may contain forward-looking statements relating to expected future events and financial and operating results of New Flyer and New Flyer Industries Canada ULC ("NFI ULC") that involve risks and uncertainties. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, New Flyer and NFI ULC disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
SOURCE New Flyer Industries Inc.
For further information: For further information: New Flyer Industries Inc., Glenn Asham, Chief Financial Officer, Tel: (204) 224-1251