TORONTO: Sentry Select Capital Corp. (“Sentry Select” or the “Manager”) is pleased to announce that the mergers of Diversified Income Trust II (“DIT II”) and Alliance Split Income Trust (“Alliance”) (collectively the “Terminating Funds”) with Premier Value Income Trust (“Continuing Fund”), (the “Mergers”) became effective today. The Mergers were approved at special meetings of unitholders of the Terminating Funds held concurrently on June 18, 2008.
The Terminating Funds transferred 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 the Terminating Funds received units of the Continuing Fund having the same aggregate net asset value as their units of the Terminating Funds as of the close of business on July 31, 2008.
Each unitholder of DIT II received 1.1865 units of the Continuing Fund in exchange for each unit of DIT II. Each unitholder of Alliance received 1.5816 units of the Continuing Fund in exchange for each unit of Alliance. Fractional units were not issued.
Special unit distribution: The Mergers triggered a tax year-end for the Terminating Funds. A special unit distribution was paid to all DIT II unitholders of record as of July 31, 2008. The distribution was paid in units, in the amount of $0.40 per unit. Following the distribution payment, the units were consolidated, resulting in no change in either the number of units or the net asset value per unit immediately following the transaction.
Throughout the year, DIT II realized capital gains from the sale of securities and must distribute the net income and net realized capital gains to unitholders to ensure that it will not be liable for income tax. The unit distribution represents the total remaining undistributed taxable income for the tax year.
The Mergers: The Manager believes that the Mergers will result in significant benefits to unitholders for the following reasons:
Costs of the Mergers:All costs and expenses associated with the Mergers are borne by the Manager.
Alliance preferred securities: Alliance preferred securities, with a face value of $4,514,910, were called and repaid by Alliance in accordance with the trust indenture on August 1, 2008.
Sentry Select Capital Corp.: Sentry Select Capital Corp. is a Canadian wealth management company that manages over $6 billion in gross assets as of June 30, 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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