InnVest Real Estate Investment Trust
TSX : INN.UN
TSX : INN.DB.A
TSX : INN.DB.B

InnVest Real Estate Investment Trust

October 09, 2008 08:51 ET

InnVest Real Estate Investment Trust Adopts Unitholder Rights Plan

TORONTO, ONTARIO--(Marketwire - Oct. 9, 2008) - InnVest Real Estate Investment Trust ("InnVest" or the "Trust") (TSX:INN.UN) announced that its Board of Trustees (the "Board") has unanimously adopted a Unitholder rights plan (the "Rights Plan"). The Plan, which is effective immediately, is subject to regulatory approval and will be in effect for a maximum of 180 days, following which it will expire automatically. InnVest is not adopting the Rights Plan in response to any specific take-over proposal, nor has it been made aware of any such proposal.

The Rights Plan is intended to ensure that Unitholders receive fair treatment in the event of an unsolicited attempt to gain control of the Trust and, in such event, to ensure Unitholders receive full value and that the Board of Trustees has time to consider alternatives to maximize Unitholder value. The Board believes that the implementation of the Rights Plan is particularly important at the present time given the volatility in the markets and the Board's view that InnVest's Units are currently significantly undervalued.

To implement the Rights Plan, the Board of Trustees has authorized the issuance of one right (a "Right") for each outstanding InnVest Unit to holders as of the close of business on October 8, 2008. The Rights will only become exercisable upon the occurrence of certain triggering events, including the acquisition by a person or group of persons of 15% or more of outstanding Units in a transaction not approved by the Board of Trustees. Each Right entitles (other than the acquiring person or group of persons) to acquire Units at a substantial discount to the prevailing market price at the time.

The Rights will not be triggered by purchasees of Units made pursuant to "Permitted Bid" under the Rights Plan, being a bid made to all InnVest Unitholders on identical terms and which remains open for acceptance for not less than 60 days.

The Rights Plan is not intended to deter a bona fide take-over bid for InnVest under a full and fair offer. It does not affect the duty of the Board to give proper consideration to any offer that might be made, and to act in the best interests of Unitholders.

A material change report containing a complete copy of the Rights Plan will be filed with the applicable securities regulatory authorities and will be made available at www.sedar.com and on InnVest's website at www.innvestreit.com.

TRUST PROFILE

InnVest REIT holds Canada's largest hotel portfolio together with an interest in Choice Hotels Canada Inc. the largest franchisor of hotels in Canada. The hotel portfolio currently comprises 148 hotel properties, with over 19,250 guest rooms, operated under internationally recognized franchise brands such as Comfort Inn®, Holiday Inn® Quality Suites/Inn®, Radisson®, Delta®, Travelodge®, Hilton Hotel®, Staybridge Suites®, Fairmont Hotels®, Sheraton Suites® and Best Western®. InnVest's trust units and outstanding convertible debentures trade on the Toronto Stock Exchange under the symbols INN.UN, INN.DB.A, INN.DB.B and INN.DB.C, respectively.

%SEDAR: 00018005E

Contact Information

  • Kenneth D. Gibson
    President and Chief Executive Officer
    (905) 206-7100
    Fax: (905) 206-7114

    Tamara L. Lawson
    Chief Financial Officer and Corporate Secretary
    (905) 206-7100
    Fax: (905) 206-7114
    Website: www.innvestreit.com