This approval was obtained at a special shareholder meeting held earlier today in Montréal, Québec. 98.83% of the proxies received by the Corporation were voted in favour of the capital reduction and repayment.
Therefore, the previously announced special cash distribution of $5.00 per share ($157,494,525) will be composed of a capital reduction and repayment of $2.70 per share ($85,047,044) and a special cash dividend of $2.30 per share ($72,447,481). As a result, a shareholder will, under certain circumstances, not be subject to tax on the amount of the capital reduction and repayment or, at the very least, be able to treat the amount of the capital reduction and repayment that is in excess of the shareholder's cost base in the shares as a capital gain.
The shares will commence trading on an ex-distribution basis (i.e. without an attached "due bill" entitlement to the special distribution) from the opening of trading on December 20, 2012, the first trading day following the payment date. Investors who enter into trades to purchase shares on or after December 20, 2012 will not be entitled to the special distribution. The due bills will be redeemed on December 24, 2012 once all the trades with attached due bills entered into up to and including December 19, 2012 have settled.
About Héroux-Devtek Inc.
Héroux-Devtek Inc. (TSX: HRX) is a Canadian company specializing in the design, development, manufacture and repair and overhaul of landing gear systems and components for the Aerospace market. The Corporation is the third largest landing gear company in the world, supplying both the commercial and military sectors of the Aerospace market with new landing gear systems and components, as well as aftermarket products and services. Approximately 70% of the Corporation's sales are outside Canada, mainly in the United States. The Corporation's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Laval and St-Hubert); Kitchener and Toronto, Ontario; as well as Springfield and Cleveland, Ohio.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.