TORONTO, April 8, 2014 /CNW/ - CI Master Limited Partnership ("the
Partnership") (TSX: CIP.UN) has issued an update on the dissolution of
The general partner, CI GP Limited ("CIGP"), reached an agreement today
to sell the Partnership's distribution agreements, which constitute all
of its material assets, to CIGP's parent company, CI Investments Inc.,
for $189,000 on or about April 29, 2014.
The transaction was approved by the Independent Review Committee for the
Partnership, which met in response to the potential for a conflict of
interest between CIGP and CI Investments with respect to the valuation
of the distribution agreements. The committee determined that the price
of $189,000, which was recommended, was fair and reasonable. In
addition, the sale was unanimously approved by the board of directors
of CIGP present at a board meeting held for this purpose. Four of the
five directors present were independent.
In this transaction, the Partnership is relying on sections of
Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions that provide exemptions from requirements for formal valuation and minority
approval due to financial hardship.
The sale of the distribution agreements is a key step in the dissolution
of the Partnership and will allow for a special distribution to
unitholders following the settlement of the Partnership's liabilities.
The distribution is estimated at $0.021 per unit and will be paid to
unitholders of record on April 30, 2014. CIGP also intends to request
that the Partnership units be delisted from the Toronto Stock Exchange
on or about April 25, 2014.
As previously announced, CIGP was obligated to dissolve the Partnership
once it was determined that it had no reasonable prospect of earning a
profit over time. The pro forma income statement prepared by the
Partnership for 2014 indicated that expenses will exceed revenues for
the year, primarily due to the termination of certain distribution
agreements at the end of 2013 representing approximately 40% of the
assets on which the Partnership was earning fees. Additional details
about the transaction are available on www.sedar.com.
SOURCE: CI Investments Inc.
For further information:
Douglas J. Jamieson
Senior Vice-President and Chief Financial Officer
CI GP Limited