TORONTO, Jan. 1 /CNW/ - IBI Group Inc. (TSX: IBG) is pleased to announce
the closing of the previously announced plan of arrangement resulting
in the successful conversion of IBI Income Fund (the "Fund") from an
income trust to a corporate entity.
Pursuant to the arrangement, unitholders of the Fund exchanged 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. has also
assumed all obligations of the Fund with respect to the Fund's
outstanding convertible debentures. The trustees of the Fund will
continue as directors of IBI Group Inc.
IBI Group Inc.'s common shares are expected to commence trading on the
Toronto Stock Exchange under the symbol "IBG" on January 4, 2011, at
which time the units of the Fund will be delisted.
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, holds all of the
Class A partnership units of IBI Group and IBI Group Management
Partnership continues to hold all of the Class B partnership units of
Pursuant to the arrangement, IBI Group Investment Partnership acquired
ownership of 2,909,903 common shares of IBI Group Inc., representing
approximately 22.5% of the issued and outstanding common shares,
received in exchange for its units of the Fund. The closing price of
one unit of the Fund on the Toronto Stock Exchange on December 31, 2010
was $13.51 per unit. The issuance of common shares by IBI Group Inc.
under the plan of arrangement is exempt from the prospectus
requirements of Canadian provincial securities laws. IBI Group
Investment Partnership acquired the common shares for investment
purposes as well as for allocation to retired partners of IBI Group
Management Partnership, and may increase or reduce its investment in
common shares according to market conditions or other relevant factors.
Statements in this news release regarding the conversion and its
effective date constitute "forward-looking" statements. Such
forward-looking statements reflect management's current expectations
regarding future events and speak only as of the date of this news
release. These 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 Group Inc.
IBI Group Inc. 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
common shares of IBI Group Inc., IBI Group Management Partnership
together with IBI Group Investment Partnership holds a 46.3% interest
in IBI Group Inc.
SOURCE IBI Income Fund
For further information:
Philip H. Beinhaker, IBI Group Inc.,
230 Richmond Street West, Toronto, Ontario, M5V 1V6, Telephone: (416) 596-1930