TORONTO, Sept. 16 /CNW/ - SCITI Trust II (the "Trust") announced today that holders ("Unitholders") of SCITI Trust II units ("Units") have approved a proposal to merge the Trust with SCITI Trust (the "Merger") whereby Unitholders can exchange their Trust Units for units of SCITI Trust on a net asset value basis. The Merger will be effected on a taxable basis for Unitholders.
The Merger, if completed, will allow Unitholders the option to exchange their Units for units of SCITI Trust, a well diversified, high yielding portfolio that is designed to be responsive to changes in the income trust market. Unitholders who participate in the Merger will receive units in a portfolio with a higher yield, a lower management expense ratio, better liquidity, and greater single name diversification than the current portfolio. In addition, a special retraction right has been created to allow Unitholders who do not wish to participate in the Merger to retract their Units as if the Trust was winding up as originally scheduled.
The Merger will become effective on or about November 2, 2009 provided all regulatory and third party approvals are received and Holders of at least 1,520,000 Units retain their Units and do not exercise the special retraction right.
Unitholders who wish to participate in the Merger do not need to take any action and will automatically become unitholders of SCITI Trust on or about November 2, 2009. Unitholders who do not wish to continue their investment in the Trust after October 30, 2009 must give notice that they wish to exercise the special retraction right with respect to their Units on or prior to September 30, 2009. Unitholders who retract their Units pursuant to such special retraction right will be paid on or about October 30, 2009. Retracting Unitholders will receive their pro rata share of the net realized proceeds per Unit together with any unpaid distributions in respect of such Unit (payable to Unitholders on record as at October 29, 2009).
About SCITI Trust II
The Trust is an investment trust which provides investors with a high current yield and low cost diversification through a portfolio of the 100 largest income funds (approximately weighted on a float capitalization basis) included in the Scotia Capital Income Trust Index.
Unitholders are entitled to receive monthly distributions as declared by the Trustee of the Trust. The Trustee intends to declare and pay monthly distributions to the extent of forecasted distributions to be received for a calendar quarter from the underlying income funds in the portfolio, less the estimated operating expenses for the period.
Trust Units of SCITI II are listed for trading on The Toronto Stock Exchange under the symbol CIT.UN.
Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and anticipated results. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," and similar expressions. These forward-looking statements are based on current expectations and assumptions which are believed to be reasonable as at the date of this statement and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The issuer assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, other than as required by applicable securities laws. In the event the issuer does update any forward-looking statement, no inference should be made that the issuer will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
SOURCE SCITI TRUST II
For further information: For further information: Investor Relations, SCITI Limited, Trustee of SCITI Trust II, (416) 945-4173, E-mail: firstname.lastname@example.org, Web site: www.scotiamanagedcompanies.com