ST. CATHARINES, ON, Dec. 3, 2013 /CNW/ - Ken Fowler Enterprises Limited ("KFEL") announced today that it has entered into a private securities purchase agreement with Retail Dimensions Incorporated ("RDI"), a company controlled by the spouse of Ken Fowler (controlling shareholder of KFEL), to acquire beneficial ownership of a total of 1,254,200 units (the "Units") of SIR Royalty Income Fund (the "Fund") (TSX: SRV.UN) from RDI. The aggregate acquisition represents approximately 13.9% of the voting units of the Fund.
KFEL's controlling shareholder Ken Fowler personally holds 115,000 voting units of the Fund, and collectively, KFEL and Ken Fowler own, directly or indirectly, 1,369,200 units of the Fund, representing approximately 15.3% of the voting units of the Fund. In connection with this purchase, KFEL is not acting in concert with any of Peter Fowler Enterprises Ltd. ("PFEL"), SIR Corp., in which PFEL holds an interest, which in turn holds securities exchangeable into a large number of units of the Fund, or Peter Fowler, who also holds units of the Fund. Except for the foregoing, KFEL is not acting in concert with any other person, including any of its shareholders, directors or officers, in connection with its holdings of the Fund, and thus any holdings that they may have in the Fund are not included herein.
KFEL acquired the Units for investment purposes and may, depending on market and other conditions, increase or decrease its beneficial ownership control or direction over units of the Fund through market transactions, private agreements, treasury issuances, exercise of options, convertible securities or otherwise. In particular, for tax and other reasons, KFEL may dispose of certain of the Units in the near future.
Pursuant to the terms of the securities purchase agreement, the consideration for the Units was satisfied by a combination of preferred shares and an assumption of liabilities, which was based on the recent current market price of units of the Fund.
SOURCE: Ken Fowler Enterprises Limited
For further information:
Greg Tremeer, Ken Fowler Enterprises Limited, tel. (905) 688-9740, at: 110 Hannover Dr. Ste 203B, P.O. Box 24091, St. Catharines, ON, L2R 7P7