I assume if Canadian, you will be able to hold JDS Uniphase Canada and not pay foreign tax. Also, I assume the float for JDS Uniphase Canada will be the amount which Canadian shareholders decide to keep. The rest will be combined and listed on the Naz. I see no dilution here. "shareholders of JDS FITEL and Uniphase will each own approximately 50 percent of the combined company following the merger" It appears they are taking care of their Canadian shareholders by setting up a subsidiary for a pooling of interests.
Under the terms of the agreement, JDS FITEL shareholders resident in Canada will, pursuant to a plan of arrangement, be entitled to receive 0.50855 shares of exchangeable stock of JDS Uniphase Canada, a wholly owned subsidiary of JDS Uniphase, or, at their option, 0.50855 shares of JDS Uniphase, for each JDS FITEL share they hold. The exchangeable shares are the economic and voting equivalent of shares of common stock of JDS Uniphase and will be exchangeable for such shares on a one-for-one basis at any time. The current shareholders of JDS FITEL and Uniphase will each own approximately 50 percent of the combined company following the merger. The structure of the transaction is expected to provide the opportunity for a tax-free exchange for Canadian holders of JDS FITEL stock.
Cheers,
Kent |
