TORONTO, Sept. 25, 2012 /CNW/ - IBI Group Inc. (TSX: IBG) ("IBI" or the "Company") announced today that it has adopted a dividend reinvestment plan ("DRIP").
The DRIP allows eligible shareholders of IBI to direct that their cash dividends be reinvested in additional common shares of the Company. IBI intends to issue the required additional common shares from treasury.
Initially, these shares, when issued from treasury, will be issued at a discount of 5% from the volume-weighted average trading price of the common shares of the Company on the Toronto Stock Exchange on the five trading days preceding the applicable dividend payment date. IBI reserves the right to limit the amount of the new equity available under the DRIP on any particular dividend date. IBI reserves the right at its discretion to direct that common shares be purchased through the facilities of the Toronto Stock Exchange at prevailing market prices.
IBI Group Management Partnership intends to participate in the DRIP. This participation will be on the same terms as dividends on common shares are reinvested and will be by IBI Group Management Partnership reinvesting a portion of the distributions received on its Class B Units of the IBI Group partnership in common shares of IBI Group Inc.
Shareholders who wish to participate in the DRIP should contact the broker through which their common shares are held to provide appropriate enrolment instructions.
A complete copy of the DRIP is available from Canadian Stock Transfer Company Inc., as administrative agent for CIBC Mellon Trust Company, the transfer agent for the common shares and the DRIP agent, by calling 1-800-387-0825 or on their website at www.canstockta.com, or from the Investors section of IBI's website at www.ibigroup.com. Shareholders should carefully read the complete text of the DRIP before making any decisions regarding their participation in the DRIP.
IBI or CIBC Mellon Trust Company will not charge shareholders commissions, service charges or brokerage fees in connection with the purchase of common shares under the DRIP.
Participation in the DRIP does not relieve shareholders of any liability for taxes that may be payable in respect of dividends that are reinvested in new common shares under the DRIP. Shareholders should consult their tax advisors concerning the tax implications of their participation in the DRIP having regard to their particular circumstances.
Please note that owners of IBI common shares who are not resident in Canada are not eligible to participate in the DRIP.
About IBI Group Inc. and IBI Group
IBI Group Inc. is a TSX listed company, which pays monthly dividends and trades under the symbol "IBG". IBI Group Inc. holds an indirect 77% interest in IBI Group, a partnership (of a subsidiary of IBI Group Inc. and IBI Group Management Partnership) which, directly and through its subsidiary entities, provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. The remaining 23% of IBI Group is owned by IBI Group Management Partnership. On a partially diluted basis, assuming the exchange of its partnership units of IBI Group for common shares of IBI Group Inc., IBI Group Management Partnership together with affiliated entities holds a combined 42% interest in IBI Group Inc.
SOURCE IBI Group Inc.