Key Takeaways:
Ravelin Properties REIT (TSX: RPR.UN) unitholders approved a plan of arrangement with Clarke Inc., with 68.69% of votes cast in favor at a special meeting held May 25.
The REIT's board of trustees had unanimously recommended the deal, supported by independent proxy advisory firms Glass, Lewis & Co. and Institutional Shareholder Services Inc.
Holders of the REIT's convertible debentures also approved the arrangement in a separate meeting. The vote follows a May 20 circular where the company disclosed that 84.5% of votes cast by unitholders to that date had been in favor.
The approval provides a path for the REIT to avoid a potential filing under the Companies' Creditors Arrangement Act (CCAA), which the board warned would likely result in a total loss for both unitholders and debentureholders.
The transaction still requires a final order from the court and approval from the Toronto Stock Exchange to be completed. The board had previously formed a special committee of independent trustees to review the arrangement, which received a unanimous recommendation from the committee.
For securityholders, this approval removes the immediate risk of a CCAA filing where recovery was projected to be zero. The final hurdles are now regulatory and court approvals, which will be the next focus for investors.
This article is for informational purposes only and does not constitute investment advice.
