2017 Ruling 2016-0674681R3 - Sequential Split-Up Butterfly -- summary under Paragraph 55(3.1)(a)

Preliminarily to a butterfly distribution that was favourably ruled upon, DC1 sold portfolio investment units for cash, and may reinvest the proceeds in marketable securities or other investments – transactions that are represented to be independent of the butterfly transactions. It will also tender a small percentage stake in a public company for shares of the offeror.

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