TORONTO, Dec. 13, 2012 /CNW/ - Allbanc Split Corp. (the "Company")
announced today that holders of its Class A Capital Shares ("Capital
Shares") have overwhelmingly approved a share capital reorganization
(the "Reorganization") allowing holders of Capital Shares, at their
option, to retain their investment in the Company after the scheduled
redemption date of March 8, 2013. The Reorganization will permit
holders of Capital Shares to extend their investment in the Company
beyond the redemption date of March 8, 2013 for up to an additional 5
years. The Class B Preferred Shares will be redeemed on the same terms
originally contemplated in their share provisions and have been called
for redemption on March 8, 2013. In order to maintain the leveraged
"split share" structure of the Company, the Company expects to create
and issue a new series of Class C preferred shares on or about March 8,
2013. In addition, the Company may also undertake a concurrent public
offering of additional Capital Shares at the same time the Class C
preferred shares will be offered.
Holders of Capital Shares electing to retain their investment in the
Company will continue to enjoy the benefit of a leveraged participation
in the capital appreciation of the Company's portfolio of common shares
of selected Canadian chartered banks while potentially deferring any
capital gains tax liability which would otherwise be realized on the
redemption of their Capital Shares.
Holders of Capital Shares who do not wish to continue their investment
in the Company after March 8, 2013 must give notice that they wish to
exercise their special retraction right and how they wish to be paid
for their shares on or prior to January 4, 2013. Holders of Capital
Shares who retract their Capital Shares will be paid on March 8, 2013.
The Reorganization will become effective provided that holders of at
least 361,000 Capital Shares retain their Capital Shares and do not
exercise the special retraction right.
SOURCE: Allbanc Split Corp.
For further information:
AllBanc Split Corp.
Web site: www.scotiamanagedcompanies.com