- Middlefield Global Real Asset Fund (TSX:RA.UN) shareholders have approved its merger with mutual fund Real Estate Split Corp. (TSX:RS)
- The objectives of the merger are to provide Middlefield shareholders with exposure to Real Estate Split Corp’s portfolio and holders of preferred shares with fixed cumulative preferential quarterly cash distributions
- The Real Estate Split Corp. distribution yield net asset value is 16.2 per cent per Class A Share and 5.2 per cent per preferred share, resulting in an expected overall distribution increase for Real Asset shareholders of 58.5 per cent
- Real Estate Split Corp. last traded at C$13.45 per share and Middlefield Global Real Asset Fund last traded at C$7.76 per share
Middlefield Global Real Asset Fund (TSX:RA.UN) shareholders have approved its merger with mutual fund Real Estate Split Corp. (TSX:RS).
In a news release, the investment trust explained that the objectives of the merger are to provide shareholders with non-cumulative monthly cash distributions, opportunity for capital appreciation through exposure to Real Estate Split Corp’s portfolio and holders of preferred shares with fixed cumulative preferential quarterly cash distributions and a return of the original issue price of $10.00 to holders upon maturity.
When the merger was announced, Real Estate Split Corp. management expressed the belief that the merger would provide benefits to its shareholders. Under the merger, Middlefield shareholders would receive shares of Real Estate Split Corp. (each share composed of one preferred share and one Class A Share of Real Estate Split Corp.). The Real Estate Split Corp. distribution yield based on June 24, 2024, net asset value is 16.2 per cent per Class A Share and 5.2 per cent per preferred share, resulting in an expected overall distribution increase for Real Asset shareholders of 58.5 per cent.
The merger is expected to be completed by Dec. 6, 2024.
Founded in 1979, Middlefield is a specialist equity income asset manager with offices in Toronto and London, England.
The Real Estate Split Corp. invests in a diversified portfolio of dividend-paying securities of issuers engaged in e-commerce and data infrastructure as well as the multi-family, industrial, retail, seniors housing and healthcare sectors.
Real Estate Split Corp. (TSX:RS) last traded at C$13.45 per share.
Middlefield Global Real Asset Fund (TSX:RA.UN) last traded at C$7.76 per share.
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