Brompton Funds Announces Sale of Certain Fund Management Contracts and Newport Receives Liquidity Option
Posted on July 05, 2011 at 16:54 PM EDT
TORONTO, ONTARIO--(Marketwire - July 5, 2011) - Brompton Corp., the parent company of Brompton Funds Management Limited (TSX:VIP.UN)(TSX:AV.UN)(TSX:OGF.UN)(TSX:AOG.UN)(TSX:MBB.UN)(TSX:GUR)(TSX:GPC) (collectively, "Brompton" or the "Company") announced today that it has entered into an agreement (the "Sale Transaction") to sell to Aston Hill Financial Inc. ("Aston Hill") contracts to manage the following seven TSX-listed closed-end funds: Brompton VIP Income Fund, Brompton Advantaged VIP Income Fund, Brompton Oil & Gas Income Fund, Brompton Advantaged Oil & Gas Income Fund, Manulife Brompton Advantaged Bond Fund, Global Uranium Fund Inc. and Senior Gold Producers Income Corp. (collectively, the "Funds"). Aston Hill currently manages over $3 billion in assets including two closed-end funds and is a listed company which trades under the symbol AHF.V. Aston Hill and Brompton intend to explore options to work together on new fund products.
The transfer of the Funds to Aston Hill will not result in a change to any of the Funds' investment objectives, investment restrictions, fees payable, redemption provisions, TSX listings or other terms of the constating documents. Furthermore, Aston Hill does not currently intend to change the Fund's auditors, custodian, valuation services agent, or registrar and transfer agent. The Sale Transaction is expected to close on or about July 27, 2011, and is subject to necessary regulatory approvals and customary terms and conditions.
Brompton is a leading provider of closed-end investment funds. The Company's senior management, employees and the Independent Review Committee will not change as a result of the Sale Transaction and will continue to provide all fund management services for its remaining closed-end funds which represent assets under management of approximately $1.3 billion. Brompton will continue its commitment to providing innovative, well conceived investment products with fair terms at a low cost supported by high levels of corporate governance.
Newport Partners Holdings LP ("Newport") is a significant shareholder with total holdings representing a 41% economic interest in Brompton. As part of its publicly announced financial restructuring, Newport has retained Canaccord Genuity Corp., as financial advisor, to explore options for the sale of a number of its investments including its Brompton position. The Company is pleased to announce today that it has entered into an agreement with Newport and Brompton Group Limited ("BGL"), another significant shareholder of Brompton, whereby subject to the completion of the Sale Transaction, BGL has granted to Newport an option to require BGL to purchase Newport's 640,000 Class A Shares in Brompton.
Canaccord Genuity Corp. provided assistance to Brompton in connection with the Sale Transaction.
For further information concerning this press release, please call Brompton's investor relations line at 416-642-9051 (toll free 1-866-642-6001).
Some of the statements contained herein including, without limitation, financial and business prospects and financial outlook may be forward-looking statements which reflect management's expectations regarding future plans and intentions, growth, results of operations, performance and business prospects and opportunities. Words such as "may," "will," "should," "could," "anticipate," "believe," "expect," "intend," "plan," "potential," "continue" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, changes in general economic and market conditions and other risk factors. Although the forward-looking statements contained herein are based on what management believes to be reasonable assumptions, we cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here