TSX Symbol: CIX.UN
TORONTO, Dec. 19 /CNW/ - CI Financial Income Fund ("CI" or the "Fund")
today announced that its unitholders have approved proposals to convert the
Fund to a corporation and to adopt a Unitholder Rights Plan.
The proposals received strong support from unitholders with over 99%
approval for the conversion and over 95% approval for the rights plan.
The conversion is subject to court approval and is expected to be
completed on January 1, 2009. CI will be renamed CI Financial Corp. and its
common shares will trade on the Toronto Stock Exchange beginning January 2,
2009, under the symbol CIX.
"Converting back to a corporation, along with the successful equity
offering announced earlier this week, puts CI in an exceptionally strong
position to pursue acquisitions and other strategic opportunities that are
arising in today's marketplace," said William T. Holland, Chief Executive
Officer.
"We are pleased to proceed with the next stage of the company's
development," Mr. Holland said. "Clearly, the corporate structure became the
most appropriate choice for our stakeholders once the federal government chose
to place onerous restrictions on existing income trusts and effectively
eliminate the trust sector."
The Unitholder Rights Plan is designed to ensure the fair treatment of
the Fund's unitholders in any transaction involving a change of control of the
Fund and to provide the Board and the Fund's unitholders with adequate time to
evaluate any unsolicited takeover bid and, if appropriate, to seek out
alternatives to maximize unitholder value. It will remain in force as a
Shareholders Rights Plan following the conversion.
CI Financial Income Fund (TSX: CIX.UN) is an independent, Canadian-owned
wealth management company with approximately $78.9 billion in fee-earning
assets as of November 30, 2008. 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.
This press release contains forward-looking statements with respect to CI
and its products and services, including its business operations and strategy
and financial performance and condition. Although management believes that the
expectations reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties. Actual results may differ
materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially from expectations
include, among other things, general economic and market factors, including
interest rates, business competition, changes in government regulations or in
tax laws, and other factors discussed in materials filed with applicable
securities regulatory authorities from time to time.
For further information: William T. Holland, Chief Executive Officer,
(416) 364-1145
