- Final distribution under income fund structure - First dividend under corporate structure expected in March 2011
HALIFAX, Dec. 20 /CNW/ - Bell Aliant Regional Communications Income Fund (the Fund or Bell Aliant) (TSX: BA.UN) today declared its cash distribution of $0.2417 per unit for the month of December 2010.
The distribution will be paid on January 14, 2011 to unitholders of record at the close of business on December 31, 2010. As Bell Aliant expects its conversion to a corporate structure to be effective January 1, 2011, this will be the final distribution to Bell Aliant unitholders under the income fund structure.
To the extent that any portion of these distributions is designated as dividends paid by Bell Aliant, that portion is designated to be an "eligible dividend" pursuant to the Income Tax Act (Canada) and corresponding provincial legislation.
As part of Bell Aliant's conversion to a corporate structure, each unit of the Fund will be exchanged for one share of the new corporation, Bell Aliant Inc. For holders resident in Canada and the United States, this exchange will be on a tax deferred basis. The new corporation is expected to pay an initial dividend of $0.475 per share quarterly, ($1.90 per share annually) with the first quarterly dividend expected to be declared and paid in March 2011.
This news release contains forward-looking statements concerning the expected dividend policy of Bell Aliant Inc. after the Fund's proposed conversion to corporate form effective January 1, 2011. These statements are based on the current terms of the conversion plan of arrangement and management's expectations at December 20, 2010. The statements are subject to important risks and uncertainties, including the completion of the conversion transaction and the declaration of dividends by the Bell Aliant Inc. board of directors as currently contemplated. Therefore, actual results and events may differ materially from these forward-looking statements, and there can be no assurance that the results or events predicted will be realized. Except as may be required by Canadian securities laws, Bell Aliant disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
About Bell Aliant
Bell Aliant (TSX: BA.UN) is one of North America's largest regional communications providers and the first company in Canada to cover an entire city with fibre-to-the-home (FTTH) technology with its FibreOP(TM) services. Through its operating entities it serves customers in six Canadian provinces with innovative information, communication and technology services including voice, data, Internet, video and value-added business solutions. Through its xwave offices, Bell Aliant also provides IT professional services and advanced technology solutions. Bell Aliant's employees deliver the highest quality of customer service, choice and convenience.