CI Financial has announced it will make an unsolicited offer to acquire all outstanding common shares of DundeeWealth, and is willing to pay a hefty premium. The bid is $20.25 per share, a premium of 52% over Monday’s closing price of $13.31.
“Our offer is 52% above today’s closing price for DundeeWealth and 59% above the recent offer for a minority stake by The Bank of Nova Scotia,” said William T. Holland, CI Financial’s CEO. “Our offer fully reflects the exceptional businesses built by the Goodman family over the years at DundeeWealth.”
The bid would be paid for in units of CI Financial Income Trust, which closed at $27.00. Shareholders who accept the bid would receive 0.75 units of CI for each share of DundeeWealth.
The offer is contingent on Dundee canceling the sale of its banking unit to Scotiabank as announced September 18.
“We have a tremendous regard for the money management skills, client service standards and entrepreneurial culture of DundeeWealth and its management and financial advisors that have led to the great success of the company,” Holland said. “We expect that DundeeWealth’s advisors, employees and customers will benefit from the combination of these two exceptional firms.”
DundeeWealth has a group benefits division as well as an institutional sales and trading division.
CI said in a press release that it expects to mail out its takeover bid in early October.
Filed by Steven Lamb, Advisor.ca steven.lamb@advisor.rogers.com.