TSX Symbol: CIX.UN
TORONTO, Sept. 26 /CNW/ - CI Financial Income Fund (TSX: CIX.UN) today
announced that it is prepared to make a supported offer to acquire all of the
common shares of DundeeWealth Inc. (TSX: DW) without the condition that the
sale of the DundeeWealth banking unit and private placement to The Bank of
Nova Scotia announced on September 18, 2007 not proceed.
The offer price will continue to be 0.75 CI Financial units for each
DundeeWealth share. Based on the closing price of $27.00 for CI Financial
units on September 24, 2007, the day the offer was originally announced, the
offer represents a price of $20.25 per share. This is a premium of
approximately $6.94 or 52% per common share based on the September 24, 2007
closing price of DundeeWealth of $13.31 and a 59% premium over the weighted
average trading price of the common shares of DundeeWealth of $12.73 for the
30 trading days ended September 24, 2007.
The new offer will be subject to customary conditions, but will not be
subject to the condition that the transaction with The Bank of Nova Scotia not
proceed. In addition, the recommendation of the Board of DundeeWealth will be
required prior to making the offer. "Having spoken personally to Mr. Ned
Goodman regarding DundeeWealth and Dundee Corporation's obligation to close
the deal with The Bank of Nova Scotia, we concluded that in the circumstances
we would still be prepared to make an offer at a price of $20.25 per share
without the condition that the transaction with The Bank of Nova Scotia not
proceed, provided the offer was recommended by the DundeeWealth board," said
William T. Holland, CI Financial's Chief Executive Officer.
"CI Financial continues to believe that a combination with DundeeWealth,
even without its banking unit, offers significant benefits," Mr. Holland said.
"The combined strengths of these two entities will unlock tremendous
opportunities and significantly enhance value for stakeholders. Together we
will be much better positioned to grow and prosper in today's highly
Mr. Holland continued, "The Goodman family has built an exceptional
business and we have a great regard for the management and financial advisors
at DundeeWealth. Although we would prefer to acquire DundeeWealth with its
banking unit, in the event it is sold to The Bank of Nova Scotia, we would
welcome The Bank of Nova Scotia as a shareholder of CI Financial."
About CI Financial Income Fund
CI Financial Income Fund is an independent, Canadian-owned wealth
management company with approximately $95.4 billion in fee-earning assets as
at August 31, 2007. 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.ci.com/cix.
For further information:
For further information: William T. Holland, Chief Executive Officer, CI
Financial Income Fund, (416) 364-1145