CI Financial Corp. Completes Substantial Share Buyback Program

CI Financial Corp. Completes Substantial Issuer Bid

CI Financial Corp. (TSX: CIX) has recently concluded its substantial issuer bid, affirming its commitment to enhancing shareholder value. This strategic move involved the repurchase of 2,157,201 common shares at a price of $18.25 per share, totaling around $39.37 million. This acquisition represents about 1.48% of the total outstanding shares when the offer was initiated. Following this successful bid, the total shares issued and outstanding now stands at 143,545,084.

Details of the Share Redemption Process

The final tally conducted by Computershare Investor Services Inc., the official depositary for the issuer bid, confirmed the tender of 2,157,201 shares without a withdrawal. Notably, since the number of shares offered was below the maximum limit set by the Corporation, all validly tendered shares will be accepted without necessitating any proration. Shareholders can expect their payment for delivered shares soon, as outlined by the terms of the offer and applicable laws.

Tax Implications for Shareholders

For shareholders who participated in the buyback, it is crucial to consider the Canadian tax ramifications associated with the transaction. CI Financial estimates that the paid-up capital per share is approximately $10.7284. Consequently, as the buyback purchase price of $18.25 per share is above this threshold, shareholders selling their shares under the offer will be treated as having received a dividend equivalent to the difference between the purchase price and the paid-up capital. This designated dividend is classified as an “eligible dividend” under the Income Tax Act (Canada), facilitating more favorable tax treatment for Canadian residents.

Understanding the Specified Amount

Under subsection 191(4) of the Income Tax Act (Canada), the specified amount for this transaction is $18.93. This element is essential for shareholders to factor in as they navigate the tax implications of their share dispositions. Consulting with tax advisors will provide clarity and guidance on personal tax situations related to these transactions.

Overview of CI Financial Corp.

Established in 1965, CI Financial has emerged as a prominent player in the global asset and wealth management landscape. Headquartered in Toronto, CI Financial operates primarily within Canada, the United States, and Australia. As of the latest reports, the firm manages approximately $509.2 billion in client assets, showcasing its robust portfolio management capabilities. CI Financial encompasses three key segments:

Asset Management Division

Within the Asset Management sector, CI Global Asset Management operates extensively in Canada, while GSFM focuses its efforts in Australia. Together, these divisions deliver diverse investment solutions tailored to meet varying client needs.

Wealth Management Services

The Wealth Management segment comprises several notable entities, including CI Wealth—under which CI Assante Wealth Management and Aligned Capital Partners operate, among others. This segment emphasizes personalized wealth planning and management services for individuals and families.

The Future for CI Financial Corp.

As CI Financial continues to navigate the complexities of the financial landscape, its recent issuer bid underscores the Corporation's strategic priorities. By repurchasing shares, CI Financial not only enhances shareholder confidence but also positions itself favorably for future growth opportunities. The management team remains committed to executing its business strategies effectively while adapting to market dynamics.

Frequently Asked Questions

What is the purpose of CI Financial's substantial issuer bid?

The substantial issuer bid aimed to enhance shareholder value by repurchasing a significant number of common shares from shareholders at a premium price.

How many shares were purchased in the issuer bid?

CI Financial successfully purchased 2,157,201 common shares during the substantial issuer bid process.

What are the tax implications for shareholders?

Shareholders will be deemed to have received a dividend equal to the excess of the purchase price over the paid-up capital of the shares due to the buyback.

When can shareholders expect payment for their shares?

Payments for the shares accepted for purchase under the offer will be processed in accordance with the terms of the offer and applicable laws.

What unique services does CI Financial provide?

CI Financial offers a comprehensive suite of asset management services, wealth planning, and integrated solutions tailored for various clients, including high-net-worth individuals.

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