(April 11 – 10:30 ET) – The board of directors of Strategic Value Corporation have recommended that SVC’s shareholders vote in favour of a plan of arrangement whereby a wholly-owned subsidiary of Nova Bancorp Group (Canada) Ltd. will acquire all of the issued and outstanding class A and non-voting class B common shares of SVC at a price of $3.25 per share. The board says it is acting on the advice of an independent committee of directors which received a fairness opinion from BMO Nesbitt Burns Inc.

Mark S. Bonham and Investec Group Ltd., the two principal shareholders of SVC have each agreed, pursuant to lock-up agreements they each entered into with Nova Bancorp to vote in favour of the plan of arrangement. Bonham and Investec hold 34.57% and 23.46%, respectively, of the issued and outstanding class A and class B common shares of SVC on a non-diluted basis.

The plan of arrangement is subject to shareholder, court and regulatory approval. A special meeting of the shareholders of SVC is expected to occur prior to May 31, 2000 to consider and approve the plan of arrangement.

Bonham & Co. Inc. will continue to provide sub-advisory portfolio management services to several of the Strategic Value and O’Donnell Group of Mutual Funds. In addition, Investec will continue in its role as sub-advisor to several of the international mutual funds in the Strategic Value Series of Funds.
-IE Staff