SIR Corp. makes offer to take SIR Royalty Income Fund private in $30M deal

TORONTO – SIR Corp. says it has made an offer to take the SIR Royalty Income Fund private in a deal worth about $30 million.

The company, which runs Jack Astor’s Bar and Grill as well as other restaurants, says it has made a non-binding proposal to the fund at a price of $3.55 per unit.

Trading in SIR Royalty Income Fund units was halted ahead of the news of the offer. The units last traded for $3.70 before trading was stopped on the Toronto Stock Exchange.

SIR says it has told the fund’s trustees that it is considering asking for a meeting of the fund’s securityholders if the trustees do not wish to call a meeting to allow the securityholders to consider the proposal.

In addition to Jack Astor’s, SIR runs the Scaddabush Italian Kitchen and Bar and Canyon Creek restaurants as well as others under a license and royalty agreement with SIR Royalty Limited Partnership.

The fund, which suspended unitholder distributions last year due to the pandemic, receives distribution income from its investment in the partnership.

This report by The Canadian Press was first published Jan. 6, 2021.

Companies in this story: (TSX:SRV.UN)