Drive Products Income Fund

Drive Products Income Fund

September 25, 2008 13:55 ET

Russell Bilyk Acquires Additional Units of Drive Products Income Fund

TORONTO, ONTARIO--(Marketwire - Sept. 25, 2008) - Russell Bilyk, the President of Drive Products Income Fund (the "Fund")(TSX:DPI.UN), announces that he has entered into a private agreement to acquire 547,900 units of the Fund (the "Units") at a price of $2.90 per unit. The transaction is expected to close on or about September 26, 2008. The Units represent approximately 8.0% of the 6,889,365 outstanding units of the Fund, or approximately 4.1% of the outstanding units of the Fund together with the outstanding 6,360,418 Class B LP units of Drive Products Limited Partnership ("Class B LP units") which are exchangeable for units of the Fund.

In addition, Mr. Bilyk earlier acquired 11,200 units of the Fund (the "Exchange Units") on the Toronto Stock Exchange, representing in aggregate, together with the Units, ownership or control, directly or indirectly, of approximately 8.1% of the outstanding units of the Fund or 4.2% of the outstanding units of the Fund together with the outstanding Class B LP units.

Following the acquisition of the Units, Mr. Bilyk's holdings will consist of 559,100 units of the Fund and 1,649,858 Class B LP units, representing a 16.7% interest in the Fund, assuming the exchange of all 6,360,418 outstanding Class B LP units for units of the Fund. The 559,100 units of the Fund and 1,649,858 Class B LP units represent an interest in the Fund of approximately 25.9% assuming the exchange of only the Class B LP units owned by Mr. Bilyk into units of the Fund, a technical calculation required for purposes of early warning reporting. Mr. Bilyk will acquire the Units pursuant to the private agreement exemption from the take-over bid procedure prescribed by securities legislation. The exemption is available as the purchase will be made by private agreement from not more than 5 persons in the aggregate and the value of consideration paid for the Units, including brokerage fees and commissions, will not be greater than 115% of the market price (calculated in the prescribed manner) of the Units. The Exchange Units were acquired by Mr. Bilyk pursuant to the normal course purchase exemption. The exemption was available as the Exchange Units (together with any other purchases by Mr. Bilyk in the preceding 12 months) did not exceed five percent of the outstanding units of the Fund. The Units and the Exchange Units were acquired for investment purposes. Mr. Bilyk may from time to time acquire ownership and control of additional units of the Fund, dispose of such units or continue to hold them.

A copy of the related early warning report which will be filed with the applicable securities commission may be obtained from the Fund by contacting Marco DeVuono, Director of Finance, at telephone: 905-795-3940.

Contact Information

  • Drive Products Income Fund
    Marco DeVuono
    Director of Finance
    (905) 795-3940