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Business and Finance
Business and Finance
Wed, February 29, 2012 InnVest Real Estate Investment Trust and Innvest Operations Trust Announce Unitholder and Court Approval of Reorganization
February 29, 2012 11:41 ET
InnVest Real Estate Investment Trust and Innvest Operations Trust Announce Unitholder and Court Approval of Reorganization
TORONTO, ONTARIO--(Marketwire - Feb. 29, 2012) - InnVest Real Estate Investment Trust and InnVest Operations Trust (collectively, "InnVest") (TSX:INN.UN) announced that they have obtained unitholder and court approval to proceed with their previously announced internal reorganization to unwind the stapled unit structure (the "Reorganization"). InnVest anticipates that the effective date of the Reorganization will be June 30, 2012.
The Reorganization was proposed in response to announced changes to the federal income tax rules applicable to issuers of stapled securities, which are expected to apply to InnVest as of July 20, 2012. The Reorganization was approved by 99.9% of the votes cast in person or by proxy by InnVest unitholders at a special meeting held on February 23, 2012. On February 29, 2012, InnVest received final court approval of the plan of arrangement forming part of the Reorganization from the Ontario Superior Court of Justice.
Additional information about the Reorganization is contained in InnVest's management information circular dated December 31, 2011, which is available on SEDAR at [ www.sedar.com ].
TRUST PROFILE
InnVest Real Estate Investment Trust (the "REIT") is an unincorporated open-ended real estate investment trust which owns a portfolio of 143 hotels across Canada representing approximately 19,000 guest rooms operated under internationally recognized brands. The REIT leases its hotels to InnVest Operations Trust ("IOT"), a taxable investment trust. IOT indirectly holds all of the hotel operating assets, earns revenues from hotel customers and pays rent to the REIT. IOT also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada, and earns revenues from franchising fees.
Each issued and outstanding REIT unit trades together with a non-voting unit of IOT as a "stapled unit" on the Toronto Stock Exchange (the "TSX") under the symbol INN.UN. InnVest's convertible debentures trade on the TSX under the symbols INN.DB.B, INN.DB.C, INN.DB.D, INN.DB.E and INN.DB.F.
