BPO holders approve exchange offer for new Brookfield preferreds

By Marisa Wong

Madison, Wis., April 26 - BPO Properties Ltd. said preferred shareholders approved its previously announced proposal to exchange existing preferred shares for new class AAA preference shares of Brookfield Office Properties Inc.

Preferred shareholders voted in favor of the proposal at a meeting held on Friday by a margin of 99.04%, according to a news release.

BPO Properties said it will now seek final court approval from the Ontario Superior Court of Justice. It expects the transaction to close on April 29.

At closing, holders will receive one class AAA preference share of Brookfield Office Properties in exchange for each preferred share of BPO Properties.

The Brookfield preference shares will have substantially the same terms and conditions as the preferreds of BPO Properties that are exchanged, including the dividend rates.

Currently, the series G, J and M preferred shares of BPO Properties are listed on the TSX Venture Exchange. The class AAA preference shares, series V, W and Y of Brookfield Office Properties will replace the series G, J and M preferred shares and will begin trading on the Toronto Stock Exchange under the symbols "BPO.PR.X," "BPO.PR.W" and "BPO.PR.Y," respectively, on or around May 1.

In the meantime, from market open to market close on April 30, the series G, J and M preferred shares of BPO Properties will continue to trade on the TSX Venture under the symbols "BPP.PR.G," "BPP.PR.J" and "BPP.PR.M," respectively. They will trade as proxy shares, representing an entitlement to the series V, W and Y shares of Brookfield Office Properties, respectively.

Brookfield Asset Management Inc. and the affiliates of Brookfield Office Properties currently hold, directly and indirectly, preferred shares of BPO Properties, which carry about 69.2% of the votes attaching to all preferred shares.

Brookfield Office Properties owns, develops and manages office properties and is based in Toronto.

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