Goodfellow Mulling Conversion to Income Trust, Tra
Desson, Quebec, June 24--Hardwood flooring company Goodfellow Inc. will study whether to convert itself into an income trust, the company said Thursday.
The company announced its board had decided to study the proposal but had not made any decision on such a plan.
"The board concluded that, as the fiduciary for the shareholders, and in the light of recent steps by other companies in the same industry, that it should study the advantages and disadvantages of converting the company to an Income Trust," Goodfellow said.
Under a trust, unitholders would get most of the company's cash flows.
"Any decisions to be taken will be taken after such a study, in which the interests of all shareholders, employees, clients and the long-term future of the company will be paramount."
Goodfellow said "no decision has been taken at this moment and that it is entirely possible that the company may decide not to proceed with this step."
Goodfellow is Eastern Canada's largest independent re-manufacturer and distributor of lumber products and the largest distributor of hardwood flooring in Canada.
Goodfellow shares were halted pending news of the possible trust conversion. In later trading on the Toronto Stock Exchange on Thursday, Goodfelloow shares rose $4.25 to $29.50, a gain of nearly 17 per cent.
