TORONTO, ONTARIO--(Marketwired - Feb. 7, 2014) - The Board of Trustees of InnVest Real Estate Investment Trust ("InnVest" or the "Trust") (TSX:INN.UN) today announced the formation of a special committee to supervise the Trust's response to the unitholder meeting requisition from Orange Capital, LLC.
The Special Committee is comprised of Frank Anderson, Edward Boomer, Laurence Geller, Morton Gross and Fernand Perreault, each of whom is an independent trustee of InnVest. Laurence Geller will act as Chair of the Special Committee. The Special Committee's mandate is broad and includes considering the strategic direction proposed by Orange Capital and alternatives thereto, all with a view to continuing to enhance unitholder value.
The Special Committee is considering Orange Capital's meeting requisition and the Trust will respond to Orange Capital's request within 21 days of the February 4 requisition, as required by InnVest's declaration of trust. The requisition proposes that the five independent trustees be removed from the Board, that the size of the Board be increased from seven to nine, and that unitholders appoint seven Orange Capital nominees to the Board. These nominees are proposed to constitute a majority of the Board of Trustees. Orange Capital has also made public filings indicating that it beneficially owns approximately 10.33% of the outstanding units of InnVest.
The Board of Trustees and the Special Committee value the views of InnVest's unitholders and the Special Committee has made arrangements to meet with Orange Capital early next week to discuss its concerns.
InnVest is an unincorporated open-ended real estate investment trust which owns a portfolio of 127 hotels across Canada representing approximately 16,000 guest rooms operated under internationally recognized brands. InnVest also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada.
InnVest's units and convertible debentures trade on the Toronto Stock Exchange (the "TSX") under the symbols INN.UN, INN.DB.C, INN.DB.D, INN.DB.E, INN.DB.F and INN.DB.G.