TORONTO, March 3 /CNW/ - Utility Corp. (the "Company") announced today
that its Board of Directors ("Board") has approved a proposal to reorganize
the Company. The reorganization will permit shareholders to extend their
investment in the Company beyond the scheduled redemption date of May 18, 2008
for an additional 5 years.
The reorganization will involve: (i) the extension of the originally
scheduled redemption date to May 18, 2013; and (ii) a one time adjustment to
the portfolio of the Company. Holders who do not wish to extend their
investment will have the right to have their shares redeemed on May 18, 2008.
As part of the reorganization, if approved and completed, a one time
adjustment of the Company's portfolio will be undertaken in May 2008. The
adjustment will add new Canadian utility and telecom names to the portfolio
and will rebalance the portfolio so that it is approximately equally weighted.
This adjustment will be made in order to increase the portfolio's
diversification and gross dividend yield, as well as reducing its single name
A special meeting of shareholders has been called and will be held on
April 25, 2008 to consider and vote upon the reorganization. There is no
guarantee that the proposal will be approved by shareholders. Details of the
proposed reorganization will be outlined in an information circular to be
prepared and delivered to shareholders in connection with the special meeting
and will be available on www.sedar.com.
In approving the proposal to reorganize the Company, the Board received
and relied on the financial advice and recommendations of Scotia Capital Inc.
In addition, the Board has retained Scotia Capital Inc. to act as financial
advisor on the reorganization.
Utility Corp. is a mutual fund corporation whose investment portfolio
consists primarily of publicly listed common shares of selected Canadian
utility companies. The Class C Shares of Utility Corp. are listed for trading
on The Toronto Stock Exchange under the symbol UTC.C.
Shareholders are entitled to receive dividends as declared by the Board
of Directors of Utility Corp. It is the Company's policy to declare and pay
equal monthly dividends on the outstanding Class C Shares based on revenue
received less expenses.
For further information:
For further information: Investor Relations, Utility Corp., (416)
863-7893, E-mail: email@example.com, Web site:
www.scotiamanagedcompanies.com, 40 King Street West, 26th Floor, Toronto,
Ontario, M5W 2X6, Tel: (416) 945-4394, Fax: (416) 863-7425