Brompton Equity Split Corp.
TSX : BE
TSX : BE.PR.A

Brompton Equity Split Corp.
Dividend Growth Split Corp.
TSX : DGS
TSX : DGS.PR.A

Dividend Growth Split Corp.

April 08, 2011 16:19 ET

Brompton Equity Split Corp. and Dividend Growth Split Corp. Shareholders Approve Merger

TORONTO, ONTARIO--(Marketwire - April 8, 2011) - At special meetings of Preferred and Class A shareholders of Brompton Equity Split Corp. (TSX:BE)(TSX:BE.PR.A) ("BE") and Dividend Growth Split Corp. (TSX:DGS)(TSX:DGS.PR.A) ("DGS") held today, shareholders approved special resolutions to amalgamate BE and DGS to form a new fund to be named Dividend Growth Split Corp. ("New DGS"). The effective date of the merger is expected to be May 18, 2011, subject to applicable regulatory approvals. The merger is expected to be implemented on a tax deferred basis to shareholders of BE and DGS, subject to the assumptions and qualifications outlined in the joint management information circular for the meetings.

At the meeting, the extension of the term for New DGS for up to 5 years beyond the scheduled termination date for DGS of November 30, 2014 and thereafter for successive terms of up to 5 years as determined by the New DGS Board of Directors was approved. Shareholders will be able to redeem either their Preferred Shares or Class A Shares of New DGS at Net Asset Value per Share prior to any such extension and New DGS will provide at least 60 days' notice to Shareholders of the extended retraction date by way of press release.

In addition, as a result of the approval of the special resolutions, shareholders of BE will have the opportunity to redeem their shares of BE prior to the merger if they do not wish to participate in the merger. Shareholders wishing to redeem their BE shares may surrender such BE shares to Computershare Investor Services Inc. up until 5:00 p.m. (Toronto time) on April 15, 2011. Shares are held on behalf of beneficial holders through CDS Participants who may have earlier cut off times.

New DGS will have the same investment objectives, strategies and restrictions as DGS as well as substantially the same preferred share and class A share attributes. DGS invests on an equally weighted basis in a portfolio of 20 large capitalization Canadian equities that have among the highest dividend growth rates on the TSX.

Under the merger proposal, each issued and outstanding preferred share of BE will become one preferred share of DGS. Each issued and outstanding class A share of BE will become the number of class A shares of DGS determined by dividing the net asset value per class A share of BE by the net asset value per class A share of DGS, each calculated on April 28, 2011. In order to maintain the same number of DGS class A and preferred shares outstanding following the merger, class A shares or preferred shares of BE may be redeemed by BE on a pro-rata basis prior to the merger as outlined in the joint management information circular.

For further information, please contact your financial advisor, call Brompton's investor relations line at 416-642-9051 (toll-free at 1-866-642-6001), or visit our website at www.bromptonfunds.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the fund's publicly filed documents which are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.

Contact Information

  • Brompton Funds Management Limited
    Chris Cullen
    Senior Vice President
    (416) 642-9064