ECN Capital mailed a management information circular and related materials in connection with a special meeting of holders of common shares in the capital of the corporation to be held on Dec. 2. At the meeting, shareholders will be asked to consider and, if thought advisable, pass a special resolution authorizing and approving a reduction of the stated capital account of the common shares for the purposes of effecting a return of capital to shareholders.

The return of capital will form a portion of ECN’s expected distribution to shareholders of the net proceeds from its previously-announced sale of Service Finance Company and Service Finance Holdings to Truist Bank for cash proceeds of $2 billion, subject to adjustment. Following completion of the transaction, ECN intends to distribute the aggregate net proceeds of the transaction (after estimated taxes and transaction costs) of approximately C$1.82 billion ($1.45 billion) to shareholders, which is estimated to represent a payment of approximately C$7.50 ($5.97) per common share, of which approximately C$4.15 ($3.30) is expected to comprise the return of capital and the remaining of which will be in the form of a special dividend.

ECN’s board unanimously determined that the reduction in the stated capital account of the common shares and return of capital are in the best interests of the corporation and unanimously recommended that shareholders vote for the stated capital reduction resolution.