BOSTON, Dec. 19 /PRNewswire-FirstCall/ -- John Hancock Bank and Thrift Opportunity Fund (the "Fund") announced today that the Board of Trustees of the Fund has recently adopted a proposal to implement a reverse stock split of 1-for-4. The Fund expects the effective date for the reverse stock split to be after the close of business on Monday, December 29, 2008.
As a result of the reverse stock split, every four outstanding Fund shares will be converted into one share, thereby reducing the number of outstanding shares by a factor of four. Each shareholder will hold the same percentage of the Fund's outstanding common stock immediately following the reverse stock split as they held immediately prior to the reverse stock split. Shareholders will be paid cash for any fractional shares they may own as a result of the reverse split. Reducing the number of total outstanding shares will also help reduce some of the Fund's operating costs over the long-term, such as NYSE listing fees.
The Fund has had a managed distribution plan in effect since January 2004, where the Fund makes quarterly distributions of at least 2.5% of the Fund's preceding calendar year-end NAV. Due to the Fund's reverse split, the Fund's distribution to be paid on December 31, 2008, which was declared on December 1 at $0.173 per share, will also increase by a factor of four to $0.692 per share. While the per share distribution amount will increase by a factor of four, the total number of shares will decrease by the same factor, thereby not impacting the Fund's distribution rate as a percentage of NAV.
It is important to note that as a result of the reverse split the Fund will have a new CUSIP number of 409735206 (Old CUSIP: 409735107), which will become effective at the beginning of trading on Tuesday, December 30, 2008. Therefore, for operational purposes the December 31, 2008 quarterly distribution will be paid out in cash. Shareholders who have elected to participate in the Fund's reinvestment plan will continue to reinvest their distributions starting with the Fund's March 31, 2009 distribution, under the Fund's new CUSIP number. There are no other anticipated changes to the Fund's operations as a result of the reverse stock split.
The Fund is a diversified closed-end management investment company. The investment objective of the Fund is to provide long-term capital appreciation. The Fund pursues its objective by investing at least 80% of net assets in equity securities of U.S. regional banks, thrifts and holding companies that primarily own or receive a substantial portion of their income from regional banks and thrifts.
About John Hancock Funds
The Boston-based mutual fund business unit of John Hancock Financial Services, John Hancock Funds manages more than $47.9 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors at September 30, 2008. John Hancock Funds are distributed by John Hancock Funds, LLC, member FINRA. For more information, please visit http://www.jhfunds.com/.
John Hancock Financial Services is a unit of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$385 billion (US$364 billion) at September 30, 2008. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial may be found on the Internet at http://www.manulife.com/.
