Business, Economics, Education, Entrepreneurs,
Environment, Science and Technology
|
|
|
|
____________________
Financial Demutualization
Unity Life policyholders approve demutualization sponsored by Foresters
98.9% of Eligible Policyholders Voting on Proposal Say "Yes"
MISSISSAUGA - Unity Life of Canada policyholders voted to approve the company's proposal to undergo sponsored demutualization at a special meeting of eligible policyholders held in Mississauga.
The vote follows the announcement of August 9, 2007, that Unity Life and
Foresters(TM) 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 approval by Canadian regulatory
authorities, 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," said 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."
Mr. Poole noted 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.
The final result of today's vote shows that, of the eligible
policyholders who voted, over 98.9% were in favour of the proposed
demutualization.
|
|
|
| © Copyright 2008/Exchange Morning Post/Exchange Business Communications Inc. |
