Business
Canadian Equipment Rental Fund Limited Partnership Announces Proposed Conversion to a Corporation
CALGARY, Aug. 30, 2011 /CNW/ - Canadian Equipment Rental Fund Limited Partnership (" CERF LP ...
About this update from Zedcor Inc
[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Aug. 30, 2011 /CNW/ - Canadian Equipment Rental Fund Limited\n Partnership (\"CERF LP\" or the \"Partnership\") (TSX Venture:  CFL.UN) announced today that it has entered into an\n arrangement agreement (the \"Arrangement Agreement\") with CERF GP Corp. (the \"General Partner\"), the general partner of CERF LP, and CERF Incorporated (\"CERF Inc.\"), a wholly-owned subsidiary of CERF LP, relating to a proposed\n arrangement (the \"Arrangement\") under Section 193 of the Business Corporations Act (Alberta) involving CERF LP, the General Partner, CERF Inc. and the\n holders (the \"Unitholders\") of limited partnership units of CERF LP (the \"Units\"). The Arrangement will result in the conversion of CERF LP from a\n limited partnership to a taxable Canadian corporation, namely, CERF\n Inc. The Arrangement is expected to become effective on October 1, 2011\n (the \"Effective Date\"). CERF LP intends to seek approval of the Arrangement and other\n matters from Unitholders at a special meeting of Unitholders scheduled\n for September 29, 2011 (the \"Meeting\").\n\n\nRationale and Anticipated Benefits of the Arrangement\n\n\nThe board of directors of the General Partner (the \"Board of Directors\") believes that the proposed Arrangement will enable CERF LP to pursue\n its current strategic plan for the benefit of Unitholders. Given the\n changes to Canadian federal income tax legislation relating to publicly\n traded specified investment flow-through trusts and partnerships (\"SIFTs\") which have been effective since January 1, 2011 for CERF LP,\n resulting in the diminished value of a publicly traded limited\n partnership structure, the Board of Directors believes that the best\n opportunity for creating value is to move to a corporate structure\n effective on October 1, 2011, allowing CERF LP to continue as a\n dividend paying public corporation.\n\n\nIn addition, the Board of Directors believes that the Arrangement\n provides a number of strategic benefits including, among other things,\n the expectation that the Arrangement would:\n\n\nremove CERF LP from any uncertainty that exists today in the publicly\n traded income trust and partnership marketplace;\n\nremove the restrictions on non-resident ownership applicable to\n \"Canadian partnerships\" (as defined in the Income Tax Act (Canada) (the \"Tax Act\"...