VenGrowth Asset Management Inc.

VenGrowth Asset Management Inc.

March 31, 2011 14:45 ET

Special Committee of VenGrowth Board Reiterates Commitment to Shareholders

One Media Report Takes Narrow View - Ignores Full Scope of Work Underway

TORONTO, ONTARIO--(Marketwire - March 31, 2011) - The Special Committee of the VenGrowth Board today took strong exception to one media outlet's opinion piece that claimed that shareholders were not the Special Committee's main priority.

"We are completely focused on finding solutions for shareholders that will enhance liquidity, improve redemption options, lower MERs, and improve performance," said John Kingston, Chair of the Special Committee of the VenGrowth Funds. "Today's opinion piece in the Post, takes a very narrow view of what we are considering, and ignores the many considerations that must be assessed and balanced to achieve the best deal for shareholders.

"VenGrowth, like all other funds in our sector, has legally binding contracts with managers and sponsors. Such contracts must be considered by any bidder as will all other legal items," said Mr. Kingston. "To ignore these contracts, runs the risk of exposing shareholders to extra costs, litigation, or a deal that does not go forward. However, these are only a subset of numerous other items that are being currently negotiated with several bidders."

"The process undertaken by the Special Committee has never imposed what any solution should look like, but only stated that a solution should be presented that takes into account all considerations, including existing contracts," said Mr. Ian Macdonell, Managing Director at Crosbie & Company Inc. - the independent financial advisor to the Special Committee. "I can state that asking bidders to address all of these considerations is completely standard to a transaction of this nature, and absolutely in keeping with the focus on a solution for shareholders. Accordingly, in all our discussions with potential bidders we have encouraged them to submit proposals where none of the transaction costs are paid by fund shareholders."

Special Committee on track to present best offer in May 2011

Mr. Kingston continued: "The Special Committee assisted by our independent financial advisor is actively evaluating proposals obtained through an ongoing competitive process. Multiple offers are currently being reviewed and in a few weeks it is expected that VenGrowth shareholders will be presented with a transaction that has had the benefit of a competitive process and has gone through a thorough independent financial and legal review."

"Ultimately, our shareholders will see the complete details of any deal we put forward. Shareholders will judge what is in their best interests through their vote," said Mr. Kingston.

Contact Information

  • Media Inquiries:
    Wesley Ollson
    Director, Product Management and Communications
    (416) 628-9263
    wollson@vengrowth.com