AllBanc Split Corp. - Capital Shareholders Approval of Capital Reorganization

TORONTO, Dec. 13, 2012 /CNW/ - Allbanc Split Corp. (the "Company") announced today that holders of its Class A Capital Shares ("Capital Shares") have overwhelmingly approved a share capital reorganization (the "Reorganization")  allowing holders of Capital Shares, at their option, to retain their investment in the Company after the scheduled redemption date of March 8, 2013. The Reorganization will permit holders of Capital Shares to extend their investment in the Company beyond the redemption date of March 8, 2013 for up to an additional 5 years. The Class B Preferred Shares will be redeemed on the same terms originally contemplated in their share provisions and have been called for redemption on March 8, 2013. In order to maintain the leveraged "split share" structure of the Company, the Company expects to create and issue a new series of Class C preferred shares on or about March 8, 2013. In addition, the Company may also undertake a concurrent public offering of additional Capital Shares at the same time the Class C preferred shares will be offered.

Holders of Capital Shares electing to retain their investment in the Company will continue to enjoy the benefit of a leveraged participation in the capital appreciation of the Company's portfolio of common shares of selected Canadian chartered banks while potentially deferring any capital gains tax liability which would otherwise be realized on the redemption of their Capital Shares.

Holders of Capital Shares who do not wish to continue their investment in the Company after March 8, 2013 must give notice that they wish to exercise their special retraction right and how they wish to be paid for their shares on or prior to January 4, 2013. Holders of Capital Shares who retract their Capital Shares will be paid on March 8, 2013. The Reorganization will become effective provided that holders of at least 361,000 Capital Shares retain their Capital Shares and do not exercise the special retraction right.

SOURCE: Allbanc Split Corp.

Investor Relations
AllBanc Split Corp.
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Web site: www.scotiamanagedcompanies.com