BURLINGTON, Ont. — SIR Corp. has recently made a non-binding proposal that could see the company take the SIR Royalty Income Fund (the Fund) private.
Through the potential going-private transaction, SIR would acquire all assets of the Fund at an effective price of $3.55 per Fund unit, payable in cash. In addition, SIR proposes to assume certain ordinary course liabilities of the Fund.
The proposed transaction has not been approved by the trustees of the Fund. SIR does not consider this proposal to be hostile but, recognizing the difficult position facing both SIR and the Fund, believes that the Fund’s unitholders should have the opportunity to consider its proposal.
Given the impact of the COVID-19 pandemic and the uncertainty facing unitholders of the Fund, SIR approached the Fund in late December 2020 to discuss the proposed transaction.
Along with this announcement, SIR also provided a business update, which included the closure of two Canyon Creek restaurant locations in Ontario — at the Square One Shopping Centre in Mississauga and in Scarborough — due to the negative impact of the pandemic.