TORONTO: Sentry Select Capital Corp. (the “Manager” or “Sentry Select”), the manager of Sentry Select Diversified Income Trust (the “Fund”), is pleased to announce that the Fund intends to purchase up to 24,890,643 units of the Fund (the “Units”) for cancellation by way of a normal course issuer bid through the facilities of the Toronto Stock Exchange (the “TSX”). The 24,890,643 Units represent approximately 10% of the public float of the Fund. As of December 12, 2007, 250,241,558 Units were issued and outstanding. The public float of 248,906,433 Units has been calculated as the issued and outstanding Units less Units held by insiders of the Fund.
The purchases may commence on December 18, 2007 and will terminate on December 17, 2008, or on such earlier date as the Fund may complete its purchases or provide notice of termination. Any such purchases will be made by the Fund at the prevailing market price at the time of such purchases in accordance with the requirements of the TSX.
Pursuant to a Declaration of Trust, the Fund is prohibited from purchasing Units at a price exceeding the net asset value (“NAV”) per Unit (as defined in the Declaration of Trust) on the day immediately prior to the offer to purchase Units, subject to the maximum number of Units described above. Purchases of Units at less than NAV per Unit should have the effect of increasing the NAV per Unit. All purchased Units will be cancelled.
The Fund will not purchase in any 30-day period more than 5,004,831 Units (2% of the issued and outstanding Units as at the date of acceptance of the notice of the normal course issuer bid by the TSX).
In the 12 months preceding the date of this release, the Fund has purchased for cancellation 20,788,600 Units pursuant to an expiring normal course issuer bid at an average price of $4.98, and 9,785,600 Units pursuant to a mandatory market purchase plan at an average price of $4.59.
To the knowledge of the Manager, no director, senior officer or other insider of the Manager intends at present to sell any Units under this bid. However, sales by such persons through the facilities of the TSX or elsewhere may occur if the circumstances or decisions of any such person change. The benefits to any such person whose Units are purchased would be the same as the benefits available to all other holders whose Units are purchased.
Sentry Select Diversified Income Trust: Sentry Select Diversified Income Trust is a closed-end investment trust that aims to maximize distributions to unitholders by investing primarily in high-income securities issued by a broad range of royalty and income trusts, real estate investment trusts, and limited partnerships and, to a lesser extent, fixed-income securities and high-yielding common stocks.
Sentry Select Capital Corp.: Sentry Select is a Canadian wealth management company that manages approximately $8 billion in gross assets as of November 30, 2007. The company offers a diverse range of investment products including closed-end trusts, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates. With 29 reporting issuers, Sentry Select is the manager and/or advisor to more TSX-listed entities than any other investment manager. In addition, Sentry Select manages and/or provides advisory services to four reporting issuers listed on the TSX Venture Exchange.
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This news release contains forward-looking statements that involve risks and uncertainties. These statements reflect Sentry Select’s current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, Sentry Select cannot assure that the forward-looking statements contained in this news release will be realized.
Documents (including press releases) regarding the various investment funds that are managed or advised by Sentry are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (www.sedar.com).