Unity Life of Canada policyholders today voted to approve the company’s proposal to undergo sponsored demutualization at a special meeting held today in Mississauga, Ont.
Over 98.9% of the eligible policyholders who voted were in favour of the proposed demutualization.
The vote follows the announcement of Aug. 9, 2007, that Unity Life and Foresters, a Toronto-based fraternal benefit society, had entered into an agreement under which Foresters will acquire Unity Life and Unity Life will represent Foresters in the Canadian market as a member of the Foresters group of companies.
Under the agreement, Foresters is sponsoring the demutualization of Unity Life and will subsequently subscribe to Unity Life for common shares, payable in cash. The proceeds will be used to pay eligible policyholders.
Subject to regulatory approval, Unity Life will become a wholly owned subsidiary of Foresters. The transaction is expected to be completed in April 2008.
“The decision taken today by Unity Life policyholders represents an important milestone for Unity Life,” says Tony Poole, Unity Life president and CEO. “It’s great news for the company and all of its stakeholders as it moves us closer to concluding our partnership with Foresters. This partnership will provide the financial backing and access to capital we need to realize our Canadian growth strategy, while continuing to operate under the Unity Life brand in the Canadian market.”
“Equally important, it will allow us to provide greater product selection and valuable Foresters benefits to our future clients,” Poole adds.
Poole notes that, upon completion of the sponsored demutualization, approximately 15,000 eligible Unity Life policyholders will be entitled to receive cash payments in exchange for their voting control and their share of the value of Unity Life. The average payout will be approximately $3,300.