Dundee Corporation to Make A Substantial Issuer Bid
12 September 2011 - 11:28PM
Marketwired
Dundee Corporation (TSX: DC.A)(TSX: DC.PR.A)(TSX: DC.PR.B)
announced today that it intends to make a substantial issuer bid
under which it will offer to purchase for cancellation up to
10,000,000 of its outstanding Class A Subordinate Voting Shares at
a purchase price of $23.75 per share, a 15% premium over the
closing price on Friday, September 9, 2011. No minimum number of
Shares need be tendered but the maximum number of Subordinate
Voting Shares that may be purchased by Dundee under the Offer is
10,000,000, representing approximately 16.2% of the issued and
outstanding Class A Subordinate Voting Shares. Dundee expects to
launch the Offer on September 13, 2011 and for it to expire at 5:00
pm (Toronto time) on October 19, 2011.
Ned Goodman, President and Chief Executive Officer of Dundee
said "We believe that the Company's balance sheet is sufficiently
strong to offer this substantial issuer bid, which will provide an
opportunity for those shareholders who require it to have increased
liquidity during the current uncertain stock market environment".
Mr. Goodman also stated that "Neither my family nor I will be
tendering any of our shares to the substantial issuer bid and when
we polled our directors and officers, none of them will be doing so
either".
Neither Dundee nor its Board of Directors will make any
recommendation to shareholders whether to tender or refrain from
tendering their Subordinate Voting Shares to the Offer.
Shareholders are strongly urged to consult their own financial, tax
and legal advisors and to make their own decisions whether to
tender or refrain from tendering their Subordinate Voting Shares to
the Offer and, if so, how many Subordinate Voting Shares to
tender.
This press release is for information purposes only and is not
an offer to buy or the solicitation of an offer to sell any
Subordinate Voting Shares.
About Dundee
Dundee Corporation is an independent publicly traded Canadian
asset management company. Asset management activities are focused
in the areas of Dundee's core competencies including real estate
and infrastructure, resources, and energy. Asset management
activities are carried out by Ned Goodman Investment Counsel
Limited, a registered portfolio manager and exempt market dealer
across Canada and an investment fund manager in the province of
Ontario, and by Dundee Real Estate Asset Management, the asset
management division of Dundee Realty Corporation ("Dundee Realty"),
a 70% owned subsidiary of Dundee. Asset management activities are
supported by Dundee's 48% interest in Dundee Capital Markets Inc.
("Dundee Capital Markets"). Dundee Capital Markets is also the
manager of the flow-through limited partnership business carried
out through the "CMP", "CDR" and "Canada Dominion Resources"
brands. Dundee Corporation also owns and manages direct investments
in these core focus areas, through ownership of both publicly
listed and private companies. Real estate operations are carried
out through Dundee's investment in Dundee Realty, an owner and
developer of residential and recreational properties in North
America. Resource investments are overseen by Dundee Resources
Limited ("Dundee Resources"), a wholly owned subsidiary of Dundee,
and include Dundee's 57% investment in Dundee Energy Limited
(formerly Eurogas Corporation), an oil and natural gas company with
a mandate to create long-term value through the development of high
impact energy projects.
Forward-Looking Information:
This document includes certain statements that constitute
"forward-looking statements", and "forward-looking information"
within the meaning of applicable securities laws (collectively,
"forward-looking statements"). These statements include statements
regarding Dundee's intent, or the beliefs or current expectations
of Dundee's officers and directors. Such statements are typically
identified by words such as "believe", "anticipate", "estimate",
"project", "intend", "expect", "may", "will", "plan", "should",
"would", "contemplate", "possible", "attempts", "seeks" and similar
expressions. Forward-looking statements may relate to Dundee's
future outlook and anticipated events or results.
By their very nature, forward-looking statements involve
numerous assumptions, inherent risks and uncertainties, both
general and specific, and the risk that predictions and other
forward-looking statements will not prove to be accurate. Do not
unduly rely on forward-looking statements, as a number of important
factors, many of which are beyond our control, could cause actual
results to differ materially from the estimates and intentions
expressed in such forward-looking statements. These factors
include, but are not limited to: general economic and market
conditions, Dundee's ability to execute Dundee's strategic plans
and meet financial obligations, the performance of Dundee's
principal subsidiaries and Dundee's ability to raise additional
capital; Dundee's ability to create, attract and retain assets
under management and assets under administration; risks relating to
trading activities and investments; competition faced by Dundee;
regulation of Dundee's businesses; risks associated with Dundee's
real estate and resources businesses and Dundee's investment
holdings in general, changes or disruptions in the securities
markets or volatility in the market price or liquidity of Dundee's
shares, satisfaction or waiver of the conditions to the Offer, the
extent to which holders of Subordinate Voting Shares determine to
tender their Subordinate Voting Shares to the Offer and the price
or prices at which such Subordinate Voting Shares are tendered, the
anticipated benefits of the Offer, commodity prices and other
financial exposures; the maintenance of minimum regulatory capital
requirements for certain of Dundee's subsidiaries; the ability of
Dundee and its subsidiaries to attract and retain key personnel;
and other risk factors including those listed under "Risk Factors"
in Dundee's Annual Information Form dated March 31, 2011.
Forward-looking statements speak only as of the date those
statements are made. Except as required by applicable law, we
assume no obligation to update, or to publicly announce the results
of any change to, any forward-looking statement contained herein to
reflect actual results, future events or developments, changes in
assumptions or changes in other factors affecting the
forward-looking statements.
Contacts: Dundee Corporation Ned Goodman President and Chief
Executive Officer (416) 365-5665 Dundee Corporation Lucie Presot
Vice President and Chief Financial Officer (416) 365-5157
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