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 22,538,383 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”) and the Canadian National Stock Exchange. The 22,538,383 Units represent approximately 10% of the public float of the Fund. As of December 12, 2008, 226,012,523 Units were issued and outstanding. The public float of 225,383,828 Units has been calculated as the issued and outstanding Units less Units held by insiders of the Fund.
The purchases may commence on December 19, 2008 and will terminate on December 18, 2009, 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 4,520,250 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 12,125,200 Units pursuant to an expiring normal course issuer bid at an average price of $3.73, and 12,175,335 Units pursuant to a mandatory market purchase plan at an average price of $4.01.
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 Capital Corp. is a Canadian wealth management company that 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, including, but not limited to, the ability of Sentry Select to purchase Units for cancellation by way of the normal course issuer bid, for whatever reason. 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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