Independent Trustees of SIR Fund Provide an Update to Unitholders

TORONTO, Jan. 7, 2021 /CNW/ - The Independent Trustees of SIR Royalty Income Fund (TSX: SRV.UN) (the "Fund") wish to update unitholders in respect of a press release issued yesterday by SIR Corp. ("SIR").

Over a number of months, SIR, a related party of the Fund, has expressed interest in an unsolicited transaction with the Fund, through an acquisition of Fund units for shares of SIR or cash, including recently an acquisition of units for $3.55 per unit. While the Independent Trustees had discussions with SIR concerning these expressions of interest, discussions did not proceed further on a share exchange as the parties could not agree on respective valuations. More recently, while the Independent Trustees were asking their advisors to consider SIR's most recent expression of interest for cash, SIR provided to the Independent Trustees a requisition in draft for a meeting of unitholders to consider a sale of the assets of the Fund and a termination of the Fund, as described in the SIR press release. The Independent Trustees have not received a proposal in respect of that transaction, but understand through SIR's press release that SIR wishes them to consider same.

The Independent Trustees have asked SIR for clarification of certain terms of the transaction described by it and their independent financial and legal advisors to consider various alternatives that may be available to the Fund and will further update unitholders as circumstances warrant.

SOURCE The Independent Trustees of SIR Royalty Income Fund