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Income Trust Buyouts and Conversions

This is a partial list in this rapidly changing field with new deals being announced on a regular basis.

Another list can be found here which includes take over activity between trusts something we have excluded from our total since it doesn't always result in tax leakage unless large tax pools are involved.

 A new (Dec. 07) study on the tax revenue impacts by Deloitte & Touche can be found here

 

Announced        Nov 6, 2006
Acquired         Halterm Income Fund     
Ticker           HAL.UN
Buyer            Macquarie Infrastructure Partners
Value (millions) 173                                                
Buyer Info       US$30B New York based infrastructure inv firm,
                  parent company Australian

 

 

 

 $173,000,000

Announced        Dec 4, 2006
Acquired           Alexis Nihon REIT
Ticker               AN.UN
Buyer                Homburg Invest Inc.
Value (millions)    919                                                 
Buyer Info        Investment firm with lots of properties
                          based in NS, Canada

 

 

 

 

$919,000,000

Announced        Dec 20, 2006
Acquired           Calpine Power Income Fund
Ticker               CF.UN
Buyer                 Harbinger Capital Partners
Value (millions)    880 US   $926@ 0.95Cdn$                            
Buyer Info        (Alabama) Private equity/real estate/
                          distress situations

 

 

 

 

 

$926,000,000


Announced        Jan 15, 2007
Acquired            Sunrise Senior Living REIT          
Ticker                SZR.UN
Buyer                Ventas, Inc. (NYSE: VTR)*               
Value (millions)   2,280                                                
Buyer Info          US based REIT

 

 

 

 

$2,280,000,000

 

 

Announced         Feb 1, 2007
Acquired             Lakeport Brewing Income Fund
Ticker                TFR.UN
Buyer                 Labatt Brewing Company Ltd
Value (millions)    210                           
Buyer Info          Labatt is owned by InBev (Belgium)

 

 

 

 

$210,000,000

Announced            Feb 4, 2007
Acquired              Great Lakes Carbon Income Fund
Ticker                 GLC.UN
Buyer                 Oxbow Carbon & Minerals Holdings Inc
Value (millions) 786                                                
Buyer Info       Part of the Oxbow Group a private energy company
                             based in US (Florida)

 

 

 

 

$786,000,000

 

 

Announced        Feb 9, 2007
Acquired            Norcast Income Fund
Ticker                 NCF.UN
Buyer                  Pala Investment Holdings Ltd
Value (millions)     87                                                     
Buyer Info       UK (Jersey), international alternative
                                   investment fund

 

$87,000,000

Announced         Feb 14, 2007
Acquired             Entertainment One Income Fund
Ticker                 EOF.UN
Buyer                  Marwyn
Value (millions)    177                                                   
Buyer Info         UK based investment firm (PE, MBOs, etc)

 

 

$177,000,000

Announced        Feb 16, 2007
Acquired           Amtelecom Income Fund
Ticker              AMT.UN
Buyer               Bragg Communications Inc
Value (millions) 1 29                                                  
Buyer Info       Bragg owns Eastlink, a private telecom competitor
                               based in the Maritimes

 

$129,000,000

Announced        Feb 26, 2007
Acquired           Clean Power Income Fund
Ticker               CLE.UN
Buyer                Macquarie Power Income Fund (MPT.UN)
Value (millions)   419                                                   
Buyer Info       Canada based Income Trust

 

 

$419,000,000

Announced        Mar 18, 2007
Acquired            Brands Income Fund
Ticker               ABF.UN
Buyer                Associated TorQuest Partners
Value (millions)  43                                                     
Buyer Info       Canada based private equity firm

 

 

$43,000,000

Announced        Apr 1, 2007.
Acquired            KCP Income Fund
Ticker                KCP.UN
Buyer                 Caxton-Iseman Capital Inc.
Value (millions)     804                                               
Buyer Info       New York-based private equity firm

 

 

$804,000,000

Announced        Apr 3, 2007
Acquired           Gateway Casino Income Fund
Ticker               GCI..UN
Buyer                New World Gaming Partners
Value (millions)   886                                                 
Buyer Info       JV of Publishing and Broadcasting Limited (PBL) and
                          Macquarie (both Australian)

 

$886,000,000

Announced        Apr 10, 2007
Acquired            Liquor Barn Income Fund
Ticker                 LBN.UN
Buyer                 Liquor Stores Income Fund (LIQ.UN)
Value (millions)    158                                             
Buyer Info       Competitor, Canada based Income Trust

 

 

 

$158,000,000

Announced        Apr 16, 2007
Acquired            VOXCOM Income Fund
Ticker                VOX.UN
Buyer                 UE Waterheater Income Fund (UWH.UN)
Value (millions)   109                                                 
Buyer Info       Canada based Income Trust

 

 

$109,000,000

Announced        Apr 16, 2007
Acquired            UE Waterheater Income Fund
Ticker                UWH.UN
Buyer                 Alinda Capital Partners LLC
Value (millions)    1,740                                            
Buyer Info        US (NY) based private equity firm

 

 

$1,740,000,000

Announced        Apr 24, 2007
Acquired           Thunder Energy Trust
Ticker               THY.UN
Buyer                PSPIB/Overlord Financial
Value (millions)     406                                                  
Buyer Info        Public Sector Pension Investment Board (Canadian PP)

 

 

$406,000,000

Announced         May 4, 2007
Acquired            Canada Cartage
Ticker                TRK.UN
Buyer                 Nautic Partners
Value (millions)    252                                                   
Buyer Info        US based Private Equity (group of buyers)

 

 

$252,000,000

Announced        May 25, 2007

Acquired            VersaCold Income Trust

Ticker                ICE.UN

Buyer                 Eimskip Holdings Inc.    

Value (millions)     525                                                

Buyer Info         HF Eimskipafelag Islands

 

 

$525,000,000

Announced      June 1, 2007
Acquired         Osprey Media Income Trust

Ticker             QSP.UN

Buyer              Quebecor Inc

Value (millions)    517                                              

Buyer Info

 

 

$517,000,000

Announced        June 14, 2007
Acquired           Custom Direct Income Fund
Ticker              CDI.UN
Buyer                EdgeStone Capital Partners
Value (millions)   237                                                
Buyer Info        Canadian based P/E

 

 

$237,000,000

Announced      July    2007

Acquired          Stephen Rental Services Income Trust

Ticker               RNT.UN

Buyer                Edgestone Capital Partners                         

Value (millions)       67

Buyer Info         Edgestone Capital Partners was later acquired by GMP capital

 

 

$67,000,000

Announced      July 11, 2007

Acquired          ShinningBank Income Trust

Ticker              SHN.UN

Buyer                PrimeWest Energy Income Trust

Value (millions)     1,250  Stock Swap                                  $????

Buyer Info        merger of assets and tax pools

 

 

Announced      July 13, 2007

Acquired           Legacy Hotel Income Trust

Ticker               LGY.UN

Buyer                Caisse de dépôt et placement

Value (millions)  2,500                                           

Buyer Info         Quebec's big public fund manager

 

 

 

$2,500,000,000

Announced     July 24, 2007

Acquired        Arriscraft International Income Fund

Ticker            AIN.UN

Buyer             General Shale & Brick Inc

Value (millions)   110                                               

Buyer Info       General Shale is wholly-owned subsidiary of Wienerberger AG,

                           the largest brick company in the world.

 

$110,000,000

Announced       Aug 2, 2007       
Acquired         
Canadian Hotel Income Properties        
Ticker              HOT.UN
Buyer                 British Columbia Investment Management Corp.

Value (millions)  1,200
                                            
Buyer Info

 

 

$1,200,000,000

Announced       Aug 4, 2007

Acquired           Movie Distributions Income Trusts

Ticker                FLM.UN

Buyer                 Edgestone Capital Partners LP

Value (millions)   193                                             

Buyer  Info           Edgestone Capital Partners LP and

                                  GS Capital Partners

 

 

$193,000,000

Announced       Aug 13, 2007      
Acquired          Golf Town              
Ticker              GLF.UN                                                                
Buyer               OMERS capital partners                                         
Value(millions)   240

Buyer Info       Ontario Municipal Employees Retirement System.

 

 

$240,000,000

Announced       Sept 4, 2007

Acquired           Spinrite Income Trust 

Ticker               SNF.UN

Buyer                Sentinel Capital Partners,

Value (millions)    92                                                    

Buyer Info        Sentinel Capital Partners, originally marketed

                                                   Spinrite as an Income Trust

 

 

$92,000,000

Announced          Sept 5, 2007
Acquired             Canadian Crude Seperators
Ticker                 CCR.UN
Buyer                  CEO David Werklund and partners
Value (millions)    3,500                                              
Buyer Info         CAI Capital Partners, Goldman Sachs Capital Partners, 
                            Kelso and Company, Vestar Capital Partners, 
                            British Columbia Investment Management Corp., 
                            Alberta Investment Management, O.S.S.Capital Management L.P
$3,500,000,000

Announced             Sept 10, 2007       
Acquired                Sound Energy
Trust       
Ticker                    SND.UN
Buyer                     Advantage Energy Trust AVN.UN
Value (millions)     257                                               
Buyer Info               
Advantage Energy Trust increasing its tax pools

 

 

$257,000,000

Announced        Sept 10,2007

Acquired             ED Smith Income Trust

Ticker               JAM.UN

Buyer                TreeHouse Foods Inc

Value (millions)       217                                                                             

Buyer Info         Treehouse Foods American pickle and condiment company

 

 

$217,000,000

Announced     Sept 18, 2007 *

Acquired         Gienow Windows & Doors Income  Trust

Ticker             GIF.UN

Buyer               H.I.G. Capital LLC

Value (millions)     183                                                                               

Buyer Info         H.I.G Capital LLC of Miami

 

 

$183,000,000

Announced      Sept 19, 2007 *

Acquired         Oceanex Income Trust

Ticker             OAX.UN

Buyer              South Coast Partners

Value (millions) 165                                               

Buyer Info      consortium including Sidney Hynes, OP Trust

                          Private Markets Group and Terrma Capital Corp

 

 

$165,000,000

Announced      Sept 19, 2007

Acquired          Bonnetts Energy Services Trust                             

Ticker              BT.UN

Buyer               Converting to a Corporation                                            

Value (millions)65.8  *(1)                                            

Buyer Info       Converting to a corporation to make use of tax

                           pools and make access to capital easier prior to

                           Nov.1st 06 market cap was approx 220 million

 

$65,800,000

Announced       Sept 24, 2007

Acquired            Prime West Energy Trust

Ticker                PWI.UN

Buyer                TAQA North

Value (millions)       5,000                                             

Buyer                  TAQA is a wholly-owned subsidiary of

                             Abu Dhabi National Energy Company of Saudi Arabia

 

 

$5,000,000,000

Announced     Sept 25, 2007

Acquire          Vault Energy Trust

Ticker            VNG.UN

Buyer              Penn West Energy trust PWT.UN

Value (millions)    380 Stock Swap

Buyer Info           Penn West is a Canadian Income Trust the deal includes

                              production assets and considerable Tax pools

 

 

Announced  Oct 15 ,2007

Acquire         TransAlta Power

Ticker           TPW.UN

Buyer            Cheung Kong Infrastructure Holdings Limited

Value (millions)        629

Buyer Info   Cheung Kong Infrastructure Holdings Limited , Hong Kong

                       based listed company, has also purchased other  Canadian

                       energy  assets

$629,000,000
  Total $26,696,800,000

$26.067 Billion dollars of buyouts. Using industry average figures this represents a loss in distributions paid to investors of $2.14-2.54 billion a year and a loss in tax revenue to the government of $800-973 million dollars a year. So far we have permanently lost 15.8% of the Income trust industry in less than a year, this trend will likely accelerate as the industry adapts to the new tax, as a matter of survival expect the rest of the industry to adopt similar strategies resulting in a loss of tax revenue of $5-6 billion a year.

 Jim Flaherty was warned of this possibility by department of finance officials prior to introducing the tax and by numerous experts since, he has chosen to ignore these warnings, Canadians will get to pay for his folly. 

   "The irony here is that if they thought a new 31.5 percent tax on income trusts and ending interest deductibility was going to help them fund their GST reduction, the plan has backfired.

Once these companies are bought out by large American firms and private equity groups, they will leverage their debt and pay no taxes at all."

                                                                                                 John McCallum. Liberal finance critic

                                                                         

 http://www.liberal.ca/story_12657_e.aspx

* Subject to shareholder approval

*(1) Market Cap. when announced

 

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