Norcast Income Fund

Norcast Income Fund
Pala Investments Holdings Limited

Pala Investments Holdings Limited

March 23, 2007 07:59 ET

Pala Investments Completes Offer for Norcast Income Fund

TORONTO, ONTARIO--(CCNMatthews - March 23, 2007) - The Board of Trustees of Norcast Income Fund (TSX:NCF.UN) (the "Fund" or "Norcast") and Pala Investments Holdings Limited ("Pala") jointly announced today the completion of Pala's previously announced offer for all of the outstanding units of the Fund at a purchase price of Cdn. $9.30 per unit in cash (the "Offer"). At the expiry time of the Offer, 6,253,174 units, representing approximately 81% of the issued and outstanding units, were deposited to the Offer. All conditions to the Offer, which expired at 12:01 a.m. (Vancouver time) on March 23, 2007, have now been satisfied or waived and all of the units tendered to the Offer were taken up by 630715 N.B. Inc. ("Bidco"), an indirect wholly-owned subsidiary of Pala.

In accordance with the terms of the Offer, the trust indenture of the Fund has now been amended to permit Bidco to effect an immediate compulsory acquisition of the units held by non-tendering unitholders. Such unitholders will also be paid Cdn. $9.30 per unit in cash.

The units shall be delisted from the Toronto Stock Exchange and the Fund shall cease to be a reporting issuer in Canada as soon as possible.

Pala will be filing a report under National Instrument 62-103 of the Canadian Securities Administrators in connection with the transaction, a copy of which may be obtained from Jan Castro at (416) 975-8251.

This news release contains forward-looking statements regarding Pala's offer for all of the outstanding units of the Fund, including statements regarding the anticipated timing thereof. Actual results and developments may differ materially from those contemplated by these statements. The forward-looking statements included in this release represent Pala's and the Fund's views as of the date of this release. While each of Pala and the Fund anticipates that subsequent events and developments may cause their views to change, they specifically disclaim any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing their views as of any date subsequent to the date of this release.

Contact Information

  • English language media:
    Michael Daniher
    (416) 961-2774
    French language media:
    Denis Hamel
    (416) 539-9770
    Janet O'Donnell
    Chief Financial Officer
    (416) 975-8251