CIX purchased to cancel 6,544,502 of its common shares CI FINANCIAL CORP. ANNOUNCES FINAL RESULTS OF SUBSTANTIAL ISSUER BID
CI Financial Corp. today released the final results of its substantial issuer bid under which it has purchased for cancellation 6,544,502 of its common shares at a purchase price of $15.28 per share, for an aggregate purchase price of approximately $100-million. Shares purchased under the offer represent approximately 4.0 per cent of the issued and outstanding shares at the time that the offer was commenced. Immediately following the completion of the offer, there are 156,240,227 shares issued and outstanding.
Based on the final count by Computershare Investor Services Inc., the depositary for the offer, a total of 7,998,695 shares were properly tendered and not withdrawn. As the offer was oversubscribed, shareholders will have approximately 81.81 per cent of their successfully tendered shares purchased by the corporation (other than odd lot holders, whose shares will be purchased on a priority basis). Any shares not taken up by the corporation will be returned by the depositary to shareholders. Payment for the shares accepted for purchase under the offer will occur in accordance with the terms of the offer and applicable law.
To assist shareholders in determining the Canadian tax consequences of the offer, CI Financial estimates that for the purposes of the Income Tax Act (Canada), the paid-up capital per share is approximately $10.7284. Given that the purchase price of $15.28 per share exceeds the paid-up capital per share, shareholders who have sold shares to CI Financial under the offer will be deemed to have received a dividend equal to the excess of the purchase price over the paid-up capital of the share for Canadian federal income tax purposes as a result of such sale. The dividend deemed to have been paid by CI Financial to Canadian resident persons is designated as an eligible dividend for purposes of the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation.
The specified amount for purposes of Subsection 191(4) of the Income Tax Act (Canada) is $15.06. Shareholders should consult with their own tax advisers with respect to the income tax consequences of the disposition of their shares under the offer.
About CI Financial Corp.
CI Financial is a diversified global asset and wealth management company, operating primarily in Canada, the United States and Australia. Founded in 1965, CI Financial has developed world-class portfolio management talent, extensive capabilities in all aspects of wealth planning and a comprehensive product suite. CI Financial manages and advises approximately $420.7-million in clients assets (as at Oct. 31, 2023).
CI Financial operates in three segments:
- Asset management, which includes CI Global Asset Management, which operates in Canada, and GSFM Pty. Ltd., which operates in Australia;
- Canadian wealth management, which includes the operations of CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth (Canada), Northwood Family Office, Coriel Capital Inc., CI Direct Investing and CI Investment Services;
- U.S. wealth management, which includes Corient Private Wealth, an integrated wealth management firm providing comprehensive solutions to ultrahigh-net-worth and high-net-worth clients across the United States.
CI Financial is headquartered in Toronto and listed on the Toronto Stock Exchange (CIX).