Posted on: 04 January 2011 by Ross McSweeny
Chorus Aviation has finalised its transition from the income trust, Jazz Air Income Fund, to the dividend paying corporate structure, Chorus, as a result of which, Fund Unitholders will receive one share of Chorus for each unit held.
"Completing this corporate conversion is a key step in support of our growth strategy," explained Joe Randell, president and chief executive officer, Chorus. "As a corporation we intend to continue to offer our shareholders one of the industry’s highest dividends and long-term value. The new organisational structure to be put into place upon conversion will help facilitate a strategy of growth and diversification."
Chorus’s board of directors has established a dividend policy from which a fixed dividend is anticipated to be paid to Chorus shareholders on a quarterly basis. The amount of any dividends payable by Chorus will be at the discretion of the board and based on certain terms and conditions. It is anticipated that dividends will initially be set at $0.15 per Chorus share per quarter, with the first Chorus dividend to be declared in respect of the quarter ending 31 March 2011.
It is anticipated that the corporate structure of Chorus will attract new investors, and provide a more active and attractive market for its shareholders.