The board of loyalty program operator Aeroplan Income Fund has approved its reorganization from a trust structure to a public corporation.
The company cited changes in the tax treatment of publicly traded mutual funds, including limits on growth and undue expansion, as well as foreign ownership limitations and an increasing level of non-resident ownership in the fund as motivating the reorganization.
Aeroplan president and CEO Rupert Duchesne said in a statement that the new structure would allow the company to pursue its growth strategy.
"This change in structure will be fundamental in helping us achieve our strategic objectives over the coming years, mainly through increased flexibility to pursue attractive growth and acquisition opportunities as well as through unrestricted access to capital markets and foreign investors," he said.
Once the reorganization is complete, Aeroplan anticipates setting its dividend policy at $0.125 per common share per quarter.
The change must still be approved by at least two-thirds of unitholders at the annual and special meeting scheduled for June 19.
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