OAKVILLE, ON, March 25 /CNW/ - Algonquin Power Income Fund (the "Fund")
announces that its Trustees have adopted a Unitholder Rights Plan (the "Rights
The Rights Plan was adopted by the Trustees on March 20, 2008 and was
adopted to ensure the fair treatment of unitholders in connection with any
take-over offer for the Fund, and to provide the Trustees and unitholders with
additional time to fully consider any unsolicited take-over bid. The Rights
Plan will also provide the Trustees more time to pursue, if appropriate, other
alternatives to maximize unitholder value.
The Rights Plan is subject to regulatory approval and is subject to
approval by unitholders at the Fund's annual and special meeting of
unitholders, which will be held in Toronto on April 24, 2008. If approved by
unitholders, the Rights Plan will have an initial term of 3 years.
The Fund is not adopting the Rights Plan in response to any specific
proposal to acquire control of the Fund. The Rights Plan is similar to plans
adopted by other Canadian companies and income trusts and approved by their
The Rights Plan is not intended to prevent take-over bids, but to ensure
their proper evaluation. Under the Rights Plan, those bids that meet certain
requirements intended to protect the interests of all unitholders are deemed
to be "Permitted Bids". Permitted Bids must be made by way of a take-over bid
circular prepared in compliance with applicable securities laws and remain
open for not less than sixty days.
Under the Rights Plan, Rights have been issued and attached to all units
of the Fund issued and outstanding as of the close of business on March 20,
2008. Rights will be issued upon any future issuance of any units of the Fund
that occurs prior to the Separation Time (as defined in the Rights Plan).
In the event a take-over bid does not meet the Permitted Bid requirements
of the Rights Plan, the Rights will entitle unitholders, other than any
unitholder or unitholders making the take-over bid, to purchase additional
units in the Fund at a substantial discount to the market value at the time.
About Algonquin Power
Algonquin Power is an open-ended investment trust that owns and has
interests in a diverse portfolio of renewable power generation and sustainable
infrastructure assets across North America, including 42 renewable energy
facilities, 12 thermal energy facilities, and 17 water distribution and
waste-water facilities. Algonquin Power was established in 1997 to provide
stable earnings through a diversified portfolio of renewable energy assets.
Algonquin Power's units and convertible debentures are traded on the Toronto
Stock Exchange under the symbols APF.UN, APF.DB & APF.DB.A and units are
included in the S&P/TSX Composite Index.
For further information:
For further information: Ms. Kelly Castledine, Algonquin Power Income
Fund, 2845 Bristol Circle, Oakville, Ontario, L6H 7H7, Telephone: (905)
465-4500, Web Page: www.algonquinpower.com