CI Financial files notice to renew normal course issuer bid
TSX Symbol: CIX
TORONTO, June 10, 2014 /CNW/ - CI Financial Corp. ("CI") announced today that it has filed with the Toronto Stock Exchange its Notice of Intention to Make a Normal Course Issuer Bid.
Subject to acceptance by the Toronto Stock Exchange, CI intends to purchase up to 20,000,000 of its common shares by way of a normal course issuer bid through the facilities of the Toronto Stock Exchange. All shares purchased under the normal course issuer bid will be cancelled. The 20,000,000 common shares represent 9% of the total public float for CI, following completion of the bought deal by Bank of Nova Scotia of 72,000,000 common shares anticipated to close on June 17, 2014. As of June 9, 2014, there were 285,153,307 issued and outstanding common shares of CI.
"The ability to repurchase shares using CI's substantial free cash flow has always been a key part of our capital planning, and the increased float in CI shares has enhanced our capacity to do so," said Stephen A. MacPhail, CI President and Chief Executive Officer.
It is expected that the purchases under the normal course issuer bid may commence, subject to the Toronto Stock Exchange acceptance, on June 18, 2014, and will terminate on June 17, 2015, or on such earlier date as CI completes its purchases or provides notice of termination. Purchases will be effected through the facilities of the Toronto Stock Exchange at prevailing market prices, or such other means as may be permitted by the Toronto Stock Exchange. During the six months ended May 31, 2014, the average daily trading volume of CI on the Toronto Stock Exchange was 331,857 common shares.
CI believes that the market price of the common shares may, at certain times throughout the duration of the normal course issuer bid, be undervalued based on CI's financial performance and prospects and, accordingly, the directors are of the opinion that the purchase of common shares is an appropriate use of funds in order to increase shareholder value.
In the last 12 months under its previous normal course issuer bid, CI purchased 265,000 of its common shares at a weighted average price of $33.85 per common share.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth management company. CI offers a broad range of investment products and services, including an industry-leading selection of investment funds. CI is on the Web at www.cifinancial.com.
SOURCE CI Investments Inc.For further information:
Stephen A. MacPhail
President and Chief Executive Officer
CI Financial Corp.