PRT Forest Regeneration Income Fund

PRT Forest Regeneration Income Fund

December 19, 2008 15:21 ET

PRT Announces the Adoption of a Unitholder Rights Plan

VICTORIA, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2008) - The Fund (TSX:PRT.UN) announced today that its trustees have adopted a Unitholder Rights Plan (the "Rights Plan"). The Rights Plan is designed to ensure the fair treatment of the Fund's unitholders in any transaction involving a change of control of the Fund and to provide the Board and the Fund's unitholders with adequate time to evaluate any unsolicited takeover bid and, if appropriate, to seek out alternatives to maximize unitholder value. The Rights Plan is subject to its approval or acceptance by the Toronto Stock Exchange and must be confirmed by Unitholders at a meeting to be held within six months.

The Fund is not aware of any specific take-over bid for the Fund that has been made or is contemplated. The Rights Plan will be presented at the Annual General Meeting of the Fund in June 2009 at which time Unitholders will be asked to confirm its adoption. The Rights Plan in the form approved is not intended to, and would not, hinder full and fair offers for control of the Fund that are made to all unitholders. The Rights Plan is similar to other rights plans adopted by many Canadian income trusts and corporations.

Provisions of the Rights Plan include the limitation on Unitholder ownership at 20% of outstanding units in the absence of a take-over bid for all outstanding units and a requirement for a take-over bid to be open for a minimum of 60 days. Current beneficial owners of 20% or more of the units of the Fund (including holders of securities exchangeable for units of the Fund) are deemed to be "Grandfathered Persons" under the Rights Plan and are exempt from the definition of an "Acquiring Person" under the Rights Plan provided their beneficial interest in the outstanding units does not increase by more than 1.0% following the date the Rights Plan becomes effective. The plan will be available for viewing at once the Fund has received approval for the Rights Plan from the Toronto Stock Exchange.

About PRT

The PRT Forest Regeneration Income Fund, through its operating subsidiary, Pacific Regeneration Technologies Inc., is the largest producer of container grown forest seedlings in North America. PRT operates 14 nurseries and produces over 170 million seedlings annually. The Fund's units are listed for trading on the Toronto Stock Exchange under the symbol PRT.UN.

Contact Information

  • PRT Forest Regeneration Income Fund
    Tony Pollard
    VP Finance/CFO
    1-866-553-8733 ext. 229