TSX Symbol: CIX
TORONTO, May 25, 2011 /CNW/ - CI Financial Corp. announced today that
The Toronto Stock Exchange has accepted its Notice of Intention to Make
a Normal Course Issuer Bid.
CI intends to purchase 5,000,000 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 issue bid will
be cancelled unless they are needed for re-issuance pursuant to CI's
equity compensation plans. The 5,000,000 common shares represent 1.7%
of the issued and outstanding shares. As of May 24, 2011, there are
288,441,663 issued and outstanding common shares of CI.
It is expected that the purchases under the normal course issuer bid may
commence on May 29, 2011 and will terminate on May 28, 2012, 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. CI is permitted to
purchase up to twenty-five percent of the average daily trading volume
(247,580) of the common shares for the six months prior to the date
hereof being approximately 61,895 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 future earnings and prospects and accordingly
the directors are of the opinion that the purchase of common shares is
an appropriate use of funds to increase shareholder value.
In the last 12 months under its previous normal course issuer bid, CI
purchased 1,897,851 of its common shares at a weighted average price of
$19.16 per common share.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth
management company with assets of approximately $99.0 billion as of
April 30, 2011. CI offers a broad range of investment products and
services, including an industry-leading selection of investment funds,
and is on the Web at www.ci.com/cix.
SOURCE CI Financial Corp.
For further information:
Stephen A. MacPhail
President and Chief Executive Officer
CI Financial Corp.