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IBI INCOME FUND COMPLETES CONVERSION TO CORPORATE STRUCTURE

^{Published on 2011-01-03 06:20:13 - Market Wire}
 

TORONTO, Jan. 1 /CNW/ - IBI Group Inc. (TSX: IBG) is pleased to announce the closing of the previously announced plan of arrangement resulting in the successful conversion of IBI Income Fund (the "Fund") from an income trust to a corporate entity.

Pursuant to the arrangement, unitholders of the Fund exchanged their units of the Fund for common shares of IBI Group Inc. on the basis of one common share for each unit of the Fund.  IBI Group Inc. has also assumed all obligations of the Fund with respect to the Fund's outstanding convertible debentures.  The trustees of the Fund will continue as directors of IBI Group Inc.

IBI Group Inc.'s common shares are expected to commence trading on the Toronto Stock Exchange under the symbol "IBG" on January 4, 2011, at which time the units of the Fund will be delisted.

The basic structure of IBI Group, which carries on the business of IBI, as a partnership with two partners will continue.  Following conversion, IBI Group Inc., rather than the Fund, holds all of the Class A partnership units of IBI Group and IBI Group Management Partnership continues to hold all of the Class B partnership units of IBI Group.

Pursuant to the arrangement, IBI Group Investment Partnership acquired ownership of 2,909,903 common shares of IBI Group Inc., representing approximately 22.5% of the issued and outstanding common shares, received in exchange for its units of the Fund.  The closing price of one unit of the Fund on the Toronto Stock Exchange on December 31, 2010 was $13.51 per unit.  The issuance of common shares by IBI Group Inc. under the plan of arrangement is exempt from the prospectus requirements of Canadian provincial securities laws.  IBI Group Investment Partnership acquired the common shares for investment purposes as well as for allocation to retired partners of IBI Group Management Partnership, and may increase or reduce its investment in common shares according to market conditions or other relevant factors.

Forward-Looking Statements

Statements in this news release regarding the conversion and its effective date constitute "forward-looking" statements. Such forward-looking statements reflect management's current expectations regarding future events and speak only as of the date of this news release. These statements involve a number of risks and uncertainties, including those described under the heading "Risk Factors" in the Fund's Annual Information Form dated March 31, 2010. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Fund cannot assure investors that actual results will be consistent with these forward-looking statements.

About IBI Group Inc.

IBI Group Inc. holds an indirect 71.7% in IBI Group, a partnership which, directly and through its subsidiary entities, provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. The remaining 28.3% of IBI Group is owned by IBI Group Management Partnership.  On a partially diluted basis, assuming the exchange of its units of IBI Group for common shares of IBI Group Inc., IBI Group Management Partnership together with IBI Group Investment Partnership holds a 46.3% interest in IBI Group Inc.