TORONTO: The Board of Directors of Sentry Select Capital Corp. (“Sentry Select” or the “Manager”) announces that it is proposing a merger of Diversified Income Trust II (“DIT II”) and Alliance Split Income Trust (“Alliance”) (collectively, the “Terminating Funds”) with Premier Value Income Fund (the “Continuing Fund”) (the “Mergers”).
If approved, the Terminating Funds will transfer all of their assets to the Continuing Fund in exchange for units of the Continuing Fund and the assumption by the Continuing Fund of all the liabilities of the Terminating Funds. Each unitholder of a Terminating Fund will receive units of the Continuing Fund having the same aggregate net asset value as their units of a Terminating Fund as of the close of business on the effective date of the Merger, expected to be August 1, 2008.
The Merger: The Manager believes that the Mergers will result in significant benefits to unitholders of the Terminating Funds for the following reasons:
Costs of the Merger: All costs and expenses associated with the Mergers will be borne by the Manager.
Alliance preferred securities: If the Mergers are approved, 451,491 Alliance preferred securities, with a face value of $4,514,910, will be called and repaid by the Trust in accordance with the trust indenture.
Net asset values: As of May 26, 2008, the net asset value of DIT II was $27,500,831, the net asset value of Alliance was $8,065,197 and the net asset value of the Continuing Fund was $88,794,085.
Unitholder approval: Each Merger will require approval of two-thirds of the votes cast by unitholders of each Terminating Fund at a special meeting of the unitholders to be held on June 18, 2008. The Merger of Alliance with the Continuing Fund will not be consummated unless the Merger of DIT II with the Continuing Fund is approved by the Unitholders of DIT II. The record date for the purpose of determining the unitholders entitled to receive notice and vote at the meetings was the close of business on May 13, 2008.
The proposed Mergers are subject to the acceptance and approval by the Toronto Stock Exchange.
Sentry Select Capital Corp.: Sentry Select Capital Corp. is a Canadian wealth management company that manages over $6.5 billion in gross assets as of March 31, 2008. 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.
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Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions ‘‘expect’’, ‘‘intend’’, “will” and similar expressions to the extent they relate to Sentry Select. The forward-looking statements are not historical facts but reflect Sentry Select’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Sentry Select believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Sentry Select undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
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