Avenir Diversified Income Trust

Avenir Diversified Income Trust

July 11, 2005 19:23 ET

Avenir Diversified Income Trust to Acquire the Management Company of the EnerVest Diversified Income Trust

CALGARY, ALBERTA--(CCNMatthews - July 11, 2005) -

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States.

Avenir Diversified Income Trust (TSX:AVF.UN) (the "Trust") is pleased to announce that its wholly owned subsidiary, Avenir Operating Corp. has entered into an agreement to acquire all of the privately held joint venture that is the sole shareholder of the Manager of the EnerVest Diversified Income Trust ("EnerVest"), EnerVest Diversified Management Inc. (the "Management Company"), for approximately $125.5 million. The transaction is scheduled to close on or about September 30, 2005, subject to satisfaction of certain conditions.

The acquisition of the Management Company will add approximately $14.0 million of stable distributable cash flow to the Trust and further diversify the financial services division. In addition, the Trust believes that on a go forward basis this asset will allow for consistent organic growth.

Cypress Capital Management Ltd. ("Cypress") will remain as the investment manager of EnerVest. The sale of the joint venture interests will have no impact on the investment management agreement between EnerVest Diversified Management Inc. and Cypress.

GMP Securities Ltd. acted as financial advisor to the Trust in connection with the present transaction.

EnerVest is an actively managed, closed-end trust which invests in a diversified portfolio of income, royalty and real estate investment trusts, and limited partnerships, all of which trade on the Toronto Stock Exchange. EnerVest's objectives are to maximize monthly distributions, reduce investment risk and maximize net asset value over its life.

Avenir Diversified Income Trust is a diversified royalty and business trust which combines the cashflow streams from the three business segments of Energy, Financial Services and Real Estate with a target payout ratio of 75% to 80% in order to provide sustainable distributions.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities of the Trust have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Forward Looking Statements

Certain information regarding Avenir Diversified Income Trust set forth in this document, including management's assessment of the Trust's future plans and operations contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Trust's and management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of reserve estimates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The Trust's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward looking statements and accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward looking statements will provide what, if any benefits to the Trust.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Avenir Diversified Income Trust
    William Gallacher
    President & CEO
    (403) 237-9949
    Avenir Diversified Income Trust
    Gary Dundas
    Vice President & CFO
    (403) 237-9949
    (403) 237-0903 (FAX)
    Avenir Diversified Income Trust
    Suite 300, 808 - Street S.W.
    Calgary, Alberta T2P 1M9