ASC.PR.A Directors Recommend Term Extension

Manulife Asset Management Limited has announced:

that the Corporation’s board of directors has reviewed the terms of a proposed extension of the termination date of the Class A Shares and Preferred Shares of the Corporation for an additional term of five years from May 31, 2011 to May 31, 2016 and has determined that the extension is in the best interests of the Corporation and its securityholders and unanimously recommends that securityholders vote in favour of such extension.

The proposed extension would provide securityholders the potential to benefit from a more complete market recovery of the Corporation’s net asset value.

A special meeting of holders of the Class A Shares, Preferred Shares and Class J Shares of the Corporation (the “Securityholders”) has been called and will be held on April 4, 2011 to consider and vote upon the extension (the “Special Meeting”). Securityholders of record of the Corporation at the close of business on February 18, 2011 are entitled to receive notice of and vote at the Special Meeting. Further details of the extension are outlined in a management information circular that has been delivered to Securityholders in connection with the Special Meeting.

Asset coverage of the preferreds is currently 1.1+:1.

The Management Information Circular is not yet available on SEDAR.

As previously discussed, Manulife is disgracing itself by engaging in such an egregious form of shareholder abuse. With such skimpy first-loss protection, no preferred shareholder in his right mind will vote in favour of the deal.

Vote No.

2 Responses to “ASC.PR.A Directors Recommend Term Extension”

  1. cal says:

    They have posted on Sedar. No benefit to pref holders is being offered, just a term extension, so this is a Vote No situation.
    However, the circular describes a dissent right available to security holders which would enable fair value to be paid. Has anyone ever tried to utilise your dissent rights when the shares are held by a broker (street name)? The process says that you would have to submit shareholder certificates, which I’m not sure how would be done with a broker.

  2. […] Reader Cal alerted me in the comments to the prior post on the ASC term extension proposal that the company, AIC Global Financial Split Corp., which is now […]

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