Shareholders of Macquarie NexGen Global Infrastructure Corporation (TSX:MNF) will be asked to consider the merger of MNF into NexGen Canadian Balanced Growth Tax Managed Fund, an open-end mutual fund managed by NexGen Financial Limited Partnership.
The merger is being proposed to address the economic inefficiencies of operating MNF, which has significantly decreased in size primarily due to redemptions since its initial public offering, NexGen said Tuesday.
Under the merger proposal, Class A and B shareholders of MNF will receive shares of the NexGen Fund, the number to be based upon the relative net asset values of the MNF and NexGen Fund shares.
The proposed merger is expected to be a deferred taxable transaction for shareholders of MNF. The meeting date is on March 28, with an effective share exchange date of April 15.
“Given MNF assets have dropped to $23 million, it is no long cost effective to maintain MNF as a TSX listed security. We believe the proposed merger is the best way to provide existing investors with a similar investment which provides tax efficient monthly income and liquidity” said Laurie Munro, president and CEO of NexGen Financial Limited Partnership.
The proposed merger is expected to provide shareholders of MNF with the following benefits with lower costs, enhanced liquidity, and continued distributions.
The board of directors of MNF has approved the proposed merger.
Details regarding the proposed merger will mailed to MNF shareholders in early February.
In addition to the approval of the MNF’s shareholders, the merger is also subject to the receipt of all applicable regulatory approvals.
This press release may include forward looking statements within the meaning of securities laws. Forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from what is currently expected. Accordingly, readers should not place undue reliance on forward looking statements.
Macquarie NexGen Global Infrastructure Corporation shareholders to consider merger
No longer cost effective to maintain MNF as a TSX listed security, NexGen says
- January 18, 2011 December 14, 2017
- 14:30