Melcor Developments (MODVF, Financial) announced the completion of its acquisition of all remaining equity interests in Melcor Real Estate Investment Trust. According to the plan of arrangement under the Business Corporations Act, Melcor Developments has purchased the unowned units in Melcor REIT Limited Partnership for a cash price of $5.50 per Class A LP Unit.
The transaction enabled the REIT to utilize the sale proceeds to buy back and cancel each of its outstanding participating trust units. These were repurchased at $5.50 per unit, subject to any applicable withholding taxes.
Previously, unitholders of Melcor REIT approved this arrangement during a special meeting on April 11. Following this, the Court of King’s Bench of Alberta granted its final approval of the arrangement on April 16.
As a result of these developments, the REIT's units are slated to be delisted from the Toronto Stock Exchange once markets close on April 24. Subsequently, Melcor REIT plans to apply to relevant securities regulators to cease its status as a reporting issuer, effectively ending its public reporting obligations once the delisting process is complete.
