TransForce board approves conversion to income fund, IPO

MONTREAL (Aug. 2, 2002)– TransForce Inc., which operates Cabano Kingsway, TST Solutions, and an array of other transportation operations, said its board of directors has approved a plan to convert the publicly traded company into an income fund.

The arrangement, which will require court approval, is designed to reduce tax obligations and boost liquidity. Earlier this year, Contrans, parent of Laidlaw Carriers, converted itself to an income fund.

TransForce said it would become TransForce Income Fund and would make monthly distributions of its available cash to shareholders. The company has scheduled a meeting for shareholders to vote on the proposal Sept. 12.

Should the conversion be approves, TransForce said it will file a preliminary prospectus for an initial public offering in each province and raise approximately $100 million, the company said. The money would be used primarily to pay for TransForce’s acquisition of Canpar Transport Ltd., the Mississauga, Ont., ground parcel carrier.