CI Financial Inc. announced today that it intends to make a $254 million cash and share offer for Clarington Corp.

The basis of the offer will be, at the election of each Clarington shareholder will be offered $13 in cash, common shares of CI, or a combination of cash and CI common shares, for each Clarington common shares.

In a release, CI said it expects to mail its offer to Clarington shareholders within the next two weeks.

The bid price of $13 per Clarington share represents a 62.5% premium to the closing price of Clarington shares on the Toronto Stock Exchange on Oct. 28, 2005.

The bid price represents a premium of 68% to the weighted average trading price of Clarington shares over the past 30 trading days.

Should the offer be accepted, CI said Clarington unitholders will benefit from significant management fee reductions within 12 months as the Clarington funds are aligned with the lower cost structure of existing CI funds.

“CI’s offer provides Clarington shareholders substantial flexibility with respect to payment options, including the ability to receive CI shares. Eligible Canadian Clarington shareholders electing to receive CI shares will have the opportunity to acquire CI shares on a tax-deferred rollover basis,” CI said.

The offer will be made only by formal offer and take-over bid circular. CI anticipates that the offer will be subject to customary conditions including receipt of all necessary regulatory approvals and no material adverse change having occurred in the business, prospects or operations of Clarington.

CI is one of Canada’s largest independent mutual fund companies with more than $53 billion in assets under management through a broad array of mutual, segregated and closed-end fundsm as of Sept. 30, 2005.