CI Financial Corp. (TSX: CIX) (“CI Financial” or the
“Corporation”) today announced the final results of its
substantial issuer bid (the “Offer”) under which it has
purchased for cancellation 6,544,502 of its common shares (the
“Shares”) at a purchase price of $15.28 per Share, for an
aggregate purchase price of approximately $100 million. Shares
purchased under the Offer represent approximately 4.0% of the
issued and outstanding Shares at the time that the Offer was
commenced. Immediately following the completion of the Offer, there
are 156,240,227 Shares issued and outstanding.
Based on the final count by Computershare Investor Services
Inc., the depositary for the Offer (the “Depositary”), a
total of 7,998,695 Shares were properly tendered and not withdrawn.
As the Offer was oversubscribed, shareholders will have
approximately 81.81% of their successfully tendered Shares
purchased by the Corporation (other than “odd lot” holders, whose
Shares will be purchased on a priority basis). Any Shares not taken
up by the Corporation will be returned by the Depositary to
shareholders. Payment for the Shares accepted for purchase under
the Offer will occur in accordance with the terms of the Offer and
applicable law.
To assist shareholders in determining the Canadian tax
consequences of the Offer, CI Financial estimates that for the
purposes of the Income Tax Act (Canada), the paid-up capital per
Share is approximately $10.7284. Given that the purchase price of
$15.28 per Share exceeds the paid-up capital per Share,
shareholders who have sold Shares to CI Financial under the Offer
will be deemed to have received a dividend equal to the excess of
the purchase price over the paid-up capital of the Share for
Canadian federal income tax purposes as a result of such sale. The
dividend deemed to have been paid by CI Financial to Canadian
resident persons is designated as an “eligible dividend” for
purposes of the Income Tax Act (Canada) and any corresponding
provincial and territorial tax legislation.
The “specified amount” for purposes of subsection 191(4) of the
Income Tax Act (Canada) is $15.06. Shareholders should consult with
their own tax advisors with respect to the income tax consequences
of the disposition of their Shares under the Offer.
This news release is for informational purposes only and is not
intended to and does not constitute an offer to purchase or the
solicitation of an offer to sell Shares.
About CI Financial
CI Financial Corp. is a diversified global asset and wealth
management Corporation operating primarily in Canada, the United
States and Australia. Founded in 1965, CI Financial has developed
world-class portfolio management talent, extensive capabilities in
all aspects of wealth planning, and a comprehensive product suite.
CI Financial manages and advises on approximately $420.7 billion in
client assets (as at October 31, 2023).
CI operates in three segments:
- Asset Management, which includes CI Global Asset Management,
which operates in Canada, and GSFM Pty Ltd., which operates in
Australia.
- Canadian Wealth Management, which includes the operations of CI
Assante Wealth Management, Aligned Capital Partners, CI Private
Wealth (Canada), Northwood Family Office, Coriel Capital Inc., CI
Direct Investing and CI Investment Services.
- U.S. Wealth Management, which includes Corient Private Wealth,
an integrated wealth management firm providing comprehensive
solutions to ultra-high-net-worth and high-net-worth clients across
the United States.
CI is headquartered in Toronto and listed on the Toronto Stock
Exchange (TSX: CIX). To learn more, visit CI’s website or LinkedIn
page.
CI Global Asset Management is a registered business name of CI
Investments Inc., a wholly owned subsidiary of CI Financial
Corp.
Note Regarding Forward-Looking Statements
This press release contains “forward-looking information” within
the meaning of applicable Canadian securities laws. Forward-looking
information may relate to our future outlook and anticipated events
or results and may include information regarding our financial
position, business strategy, growth strategy, budgets, operations,
financial results, taxes, dividend policy, plans and objectives.
Particularly, information regarding our expectations of future
results, performance, achievements, prospects or opportunities is
forward-looking information. In some cases, forward-looking
information can be identified by the use of forward-looking
terminology such as “plans”, “targets”, “expects” or “does not
expect”, “is expected”, “an opportunity exists”, “budget”,
“scheduled”, “estimates”, “outlook”, “forecasts”, “projection”,
“prospects”, “strategy”, “intends”, “anticipates”, “does not
anticipate”, “believes”, or variations of such words and phrases or
state that certain actions, events or results “may”, “could”,
“would”, “might”, “will”, “will be taken”, “occur” or “be
achieved”. In addition, any statements that refer to expectations,
intentions, projections or other characterizations of future events
or circumstances contain forward-looking information. Statements
containing forward-looking information are not historical facts but
instead represent management’s expectations, estimates and
projections regarding future events or circumstances.
Undue reliance should not be placed on forward-looking
information. The forward-looking information in this press release
is based on our opinions, estimates and assumptions in light of our
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that we
currently believe are appropriate and reasonable in the
circumstances. Despite a careful process to prepare and review the
forward-looking information, there can be no assurance that the
underlying opinions, estimates and assumptions will prove to be
correct. Further, forward-looking information is subject to known
and unknown risks, uncertainties and other factors that may cause
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking information, including but not limited to, those
described in this press release. The belief that the investment
fund industry and wealth management industry will remain stable and
that interest rates will remain relatively stable are material
factors made in preparing the forward-looking information and
management’s expectations contained in this press release and that
may cause actual results to differ materially from the
forward-looking information disclosed in this press release. In
addition, factors that could cause actual results to differ
materially from expectations include, among other things, general
economic and market conditions, including interest and foreign
exchange rates, global financial markets, the impact of the
coronavirus pandemic, changes in government regulations or in tax
laws, industry competition, technological developments and other
factors described or discussed in CI Financial’s disclosure
materials filed with applicable securities regulatory authorities
from time to time. Additional information about the risks and
uncertainties of the Corporation’s business and material risk
factors or assumptions on which information contained in
forward‐looking information is based is provided in the
Corporation’s disclosure materials, including the Corporation’s
most recently filed annual information form and any
subsequently-filed interim management’s discussion and analysis,
which are available under our profile on SEDAR+ at
www.sedarplus.com.
There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward looking
information, which speaks only as of the date made. The
forward-looking information contained in this press release
represents our expectations as of the date of this news release and
is subject to change after such date. CI Financial disclaims any
intention or obligation or undertaking to update publicly or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20231220175913/en/
Investor Relations Jason Weyeneth, CFA Vice-President,
Investor Relations & Strategy 416-681-8779 jweyeneth@ci.com
Media Relations Canada Murray Oxby Vice-President,
Corporate Communications 416-681-3254 moxby@ci.com
United States Jimmy Moock Managing Partner, StreetCred
610-304-4570 jimmy@streetcredpr.com ci@streetcredpr.com
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