May 10, 2010 / 1:47 PM / 7 years ago

UPDATE 1-Canadian Helicopters Income Fund to convert to a corp

* To pay monthly dividend of C$0.09

* Says decision in reaction to tax legislation changes

* Units up 3 pct

May 10 (Reuters) - Canadian Helicopters Income Fund CHL_u.TO plans to convert from an income trust to a corporation by January 1, 2011, and said it expects to pay monthly dividend at similar levels as its current distribution.

The decision came in reaction to changes in tax legislation affecting income trusts and to allow it to be more aptly valued, enhance its access to capital and simplify its corporate structure, the fund said.

The fund, which provides flight operations and maintenance services, currently pays 9 Canadian cents as its monthly distribution.

The fund’s income trust structure will be restructured into a new public corporation, Canadian Helicopters Group Inc, if its arrangement agreement is approved.

Units of the fund were up 35 Canadian cents at C$12.90 Monday morning on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Maju Samuel)

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