Faircourt Asset Management has announced:
The adjourned special meetings of preferred securityholders of Faircourt Income & Growth Split Trust (“FIG”) and Faircourt Split Trust (“FCS”), which were originally held on September 13, 2010 but were adjourned for lack of quorum, were held today at which the preferred securityholders of FIG approved the merger of FIG into FCS (the “Merger”) and the exchange of preferred securities of FIG for a new class of preferred securities of FCS (the “Exchange”), and the preferred securityholders of FCS approved various amendments to the FCS declaration of trust and FCS trust indenture (the “FCS Proposals”), as described in the joint management information circular dated August 13, 2010 (the “Circular”). The Merger Proposal remains subject to approval by the unitholders of FIG.
The Merger and FCS Proposals are a response to expected changes in the taxation of income funds. As a result of these changes, there are now an insufficient number of “income funds” for FIG and FCS to continue to meet its investment restrictions. Consequently, upon implementation of the FCS Proposals, the investment mandate of FCS, as the continuing trust, will be expanded to remedy this situation and FCS will be able to invest in a broader range of securities and adjust its portfolio in the future as and when required to respond to market movements.
The Merger will also be considered by unitholders of FIG the funds at the adjourned special meeting of such unitholders to be held on September 27, 2010, and implementation of the Merger and the FCS Proposals are conditional on the approval of the unitholders of FIG at such meeting, all as described in the Circular.
FIG.PR.A was last mentioned on PrefBlog when the first attempt to approve the merger did not get quorum. FIG.PR.A is tracked by HIMIPref™ but is relegated to the Scraps Index on credit concerns.
[…] prior stage in this process was the approval by FIG.PR.A holders; today’s approval was by holders of […]