CI Financial Income Fund says it is prepared to make a supported offer to acquire all of the common shares of DundeeWealth Inc., and has dropped its condition that the sale of the DundeeWealth banking unit and private placement to The Bank of Nova Scotia not proceed.
CI’s offer price will continue to be 0.75 CI Financial units for each DundeeWealth share. Based on the closing price of $27 for CI Financial units on September 24, the day the offer was originally announced, the offer represents a price of $20.25 per share, or about $2.4 billion.
CI says its offer represents a premium of 52% per common share based on the September 24 closing price of DundeeWealth of $13.31.
CI’s new offer will be subject to customary conditions, but will not be subject to the condition that the transaction with Scotiabank 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 Bill Holland, CI Financial’s CEO, in a release.
“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,” Holland said.
CI still interested in acquiring DundeeWealth
Sale of banking unit to Scotiabank would be allowed to proceed
- By: IE Staff
- September 26, 2007 September 26, 2007
- 11:20