InnVest Real Estate Investment Trust

InnVest Real Estate Investment Trust

October 28, 2008 17:00 ET

TSX Defers Consideration of InnVest Unitholder Rights Plan

TORONTO, ONTARIO--(Marketwire - Oct. 28, 2008) - InnVest Real Estate Investment Trust ("InnVest" or the "Trust") (TSX: INN.UN) announced today that in connection with its recently announced Unitholder Rights Plan (the "Plan"), the Toronto Stock Exchange ("TSX") has deferred its consideration of adoption of the Plan. The TSX has advised InnVest that its decision to defer consideration of the Plan is based on the fact that the Plan will expire within 180 days of its effective date. In the interim, the Plan remains in full effect in accordance with its terms.

The Plan is intended to ensure that Unitholders receive fair treatment in the event of an unsolicited attempt to gain control of InnVest and, in such event, to ensure Unitholders receive full value and that the Board of Trustee has time to consider alternatives to maximize Unitholder value. The Board believes that the implementation of the 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.

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 the outstanding Units in a transaction not approved by the Board. The Board of Trustees considered many factors in its determination to implement the Plan and the appropriate threshold for triggering the Plan. In particular, the Board considered the recent significant drop in InnVest's unit price, the high trading volumes in InnVest's units, the continued volatility and uncertainty in the markets and the historically low attendance rates at InnVest's annual general meetings.

The Rights will not be triggered by purchases of Units made pursuant to a "Permitted Bid" under the 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 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.

The text of the Plan is available at and


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.

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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