Following is taken from Annual Information Form found at Sedar. My question is will they be able to distribute tax free? June is almost 1/2 over and I thought this was when NF was to be distributed. If the tax free ruling is not obtained what are their options?
sedar.com
During the remainder of 1998, the Company intends to distribute to common shareholders the Company's
67.1% interest in Noranda Forest Inc. (``NFI'') and 100% interest in Canadian Hunter Exploration Ltd.
(``Hunter''). The Company has made an application to Revenue Canada for an income tax ruling so that such
distributions will be tax-free for both the Company and all of its common shareholders. If such income tax
ruling is obtained from Revenue Canada, the Company will convene a special meeting of its common
shareholders to approve the distributions under a statutory plan of arrangement and also subsequently seek
consent from the Ontario Court (General Division) for such plan of arrangement. Under these intended
distributions, each common shareholder will receive shares of NFI and Hunter in proportion to their
shareholding in the Company on the record date for the distribution. If a favorable income tax ruling is not
obtained, then the Company will consider other alternatives to divest itself of its interests in NFI and Hunter.
Accordingly, in this Annual Information Form, the businesses of Noranda are discussed in two sections:
Noranda's Mining and Metals Group is also referred to as ``Continuing Operations'' and the Forest Products and
Oil and Gas Groups are also referred to as ``Discontinued Operations''.
Upon completion of the Restructuring, the Company will own, in addition to its wholly-owned mining and
metals assets, 80% of Magnola Metallurgy Inc. (``Magnola''), 47.5% of Falconbridge Limited (``Falconbridge''),
58.8% of Novicourt Inc. (``Novicourt''), 28.4% of Battle Mountain Gold Company (``Battle Mountain Gold'')
and an 85% interest in Wire Rope Industries Ltd. (``Wire Rope''). EdperBrascan Corporation (``EdperBrascan'')
would remain as the Company's major shareholder, holding approximately 40% of the Company's outstanding
common shares. |
