TORONTO, ONTARIO, Jul 04 (MARKET WIRE) --
Brompton Funds is pleased to announce the completion of the merger of
Brompton Stable Income Fund (TSX: BSR.UN) ("BSR"), Brompton Equal Weight
Income Fund (TSX: EWI.UN) ("EWI"), Business Trust Equal Weight Income
Fund (TSX: BWI.UN) ("BWI"), BG Top 100 Equal Weighted Income Fund (TSX:
BTH.UN) ("BTH"), Brompton Tracker Fund (TSX: BTF.UN) ("BTF") and BG
Income + Growth Split Trust (TSX: BDS.UN)(TSX: BDS.PR.A) ("BDS") into
Brompton VIP Income Fund (TSX: VIP.UN) ("VIP") effective July 4, 2008.
This merger was approved at a special meeting of securityholders held on
June 9, 2008 as part of the reorganization of these funds to address the
expected tax on income trusts in 2011.
The merger was implemented on a tax-deferred rollover basis for
unitholders at an exchange ratio calculated as the net asset value
("NAV") per unit of each merging fund divided by the NAV per unit of VIP,
the continuing fund, each determined as at the close of business on July
3, 2008. The table below provides the respective exchange ratios and NAV
per unit for each of the Funds at such time.
Exchange Ratio NAV Per Unit
VIP.UN 1.000000 $13.5846
BSR.UN 0.965166 $13.1114
EWI.UN 0.858310 $11.6598
BWI.UN 0.691945 $ 9.3998
BTH.UN 0.736385 $10.0035
BTF.UN 0.666423 $ 9.0531
BDS.UN 1.013000 $13.7612
Unitholders of the funds are not required to take any action in order
to be recognized as a unitholder of VIP. Former unitholders of the
merging funds who wish to participate in the distribution reinvestment
plan ("DRIP") can enrol in the DRIP program by contacting their
Investment Advisor and requesting that they be enrolled in the Brompton
VIP Income Fund Distribution Reinvestment Plan.
Preferred securities of BDS will be automatically exchanged for 6.0%
preferred securities of VIP (ticker symbol VIP.PR.A) and preferred
securityholders will be considered to have disposed of their BDS
preferred securities for proceeds equal to $10.00 per preferred security
upon the exchange.
Prior to the opening of trading on July 7, 2008, VIP will have
approximately 58.4 million units outstanding and a market capitalization
of approximately $780 million. Units of VIP issued pursuant to the merger
will trade under the symbol VIP.UN beginning on July 7, 2008. As part of
the reorganization, the monthly distribution rate for unitholders of
record of VIP on July 31, 2008 will be increased to $0.10 per unit, which
represents an 11% increase over the distribution rate paid prior to the
fund reorganization.
For additional information regarding the reorganization, please visit our
website at www.bromptongroup.com.
Commissions, trailing commissions, management fees and expenses all may
be associated with investment funds. Please read the funds publicly filed
documents which are available from SEDAR at www.sedar.com. Investment
funds are not guaranteed, their values change frequently and past
performance may not be repeated.
Contacts:
Brompton Funds Management Limited
David E. Roode
Senior Vice President
(416) 642-6008
Brompton Funds Management Limited
Investor relations
(416) 642-9051 or Toll Free: 1-866-642-6001
Website: www.bromptongroup.com
Copyright 2008, Market Wire, All rights reserved.
-0-
