TORONTO, April 29, 2013 /CNW/ - Utility Corp. (the "Company") announced today that the final condition required to extend the term of the Company for an additional five years to May 22, 2018 has been met. Holders of Class C shares (the "Shares") of the Company previously approved the extension, subject to the condition that a minimum 1,200,000 Shares remain outstanding following the April 26, 2013 additional special retraction right (the "Special Retraction Right").
Under the Special Retraction Right, 131,734 Shares were tendered to the Company for retraction on May 21, 2013. The holders of the remaining 2,271,500 Shares (representing 94.5% of the currently outstanding Shares) will continue to enjoy the benefits of an investment in a portfolio of selected utility and telecommunications related issuers.
As part of the extension, a one-time adjustment of the Company's portfolio will be undertaken in May 2013. The adjustment will rebalance the portfolio to comprise of securities of 19 selected issuers in the electrical, power and pipeline utilities and telecommunications issuers held initially on an approximately equally weighted basis. This adjustment is being made in order to increase the portfolio's diversification, reduce its single name exposure, and is currently expected to increase the portfolio's gross dividend yield.
Utility Corp. is a mutual fund corporation whose investment portfolio consists of publicly listed securities of selected Canadian utility and telecommunication issuers. The Class C Shares of Utility Corp. are listed for trading on the Toronto Stock Exchange under the symbol UTC.C.
SOURCE: Utility Corp.
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