TORONTO, Dec. 19,
2023 /CNW/ - E-L Financial Corporation Limited
(TSX: ELF) (TSX: ELF.PR.F) (TSX: ELF.PR.G) (TSX: ELF.PR.H) (the
"Company") announced today that upon the terms and subject
to the conditions of its substantial issuer bid (the
"Offer"), the Company has taken up and will pay for 90,668
common shares (the "Shares") that were validly deposited to
the Offer and not withdrawn at a price of $1,050.00 per Share.
The Shares to be purchased under the Offer represent an
aggregate purchase price of approximately $95,201,400 and 2.55% of the total number of the
Company's issued and outstanding Shares before giving effect to the
Offer. After giving effect to the Offer, the Company has 3,461,722
Shares issued and outstanding.
Payment and settlement of the Shares purchased pursuant to the
Offer will be effected by Computershare Investor Services Inc. in
accordance with the settlement procedures described in the Offer
Documents. As the total number of Shares tendered was less than the
total that could have been acquired by the Company under the terms
of the Offer, all Shares validly deposited and not withdrawn prior
to the expiry of the Offer will be acquired and no proration will
be required.
For Canadian federal income tax purposes, a deemed dividend
arises on the repurchase of Shares under the Offer. To assist
holders of Shares ("Shareholders") in determining the
Canadian income tax consequences of the Offer, the Company has
determined that for purposes of the Income Tax Act
(Canada) (the "Tax Act"),
the paid-up capital per Share is estimated to be approximately
$18.00 at the time of repurchase
under the Offer. Shareholders should review the issuer bid circular
dated November 7, 2023 for more
information, including information about the tax treatment of
deemed dividends (refer to Section 13 "Income Tax Considerations
– Certain Canadian Federal Income Tax Considerations"). The
Company designates the entire amount of the deemed dividend arising
from its repurchase of Shares under the Offer as an "eligible
dividend" for purposes of the Tax Act.
The "specified amount" for purposes of subsection 191(4) of the
Tax Act in respect of each Share is $1,005.00.
Details of the Offer are described in the offer to purchase and
issuer bid circular dated November 7,
2023, as well as the related letter of transmittal and
notice of guaranteed delivery (the "Offer Documents"),
copies of which were filed and are available on SEDAR+ at
www.sedarplus.ca.
This press release is for informational purposes only and does
not constitute an offer to buy or the solicitation of an offer to
sell the Company's Shares.
About E-L Financial Corporation
Limited
E-L Financial operates as an investment and insurance holding
company. In managing its operations, the Company distinguishes
between two operating segments, E-L Corporate and Empire Life.
E-L Corporate represents investments in stocks and fixed income
securities held directly and indirectly through pooled funds,
closed-end investment companies and other investment companies. The
investment strategy is to accumulate shareholder value through
long-term capital appreciation and dividend and interest income
from its investments.
Empire Life is a subsidiary of the Company. Since 1923, Empire
Life has provided individual and group life and health insurance,
investment and retirement products to Canadians. Empire Life's
mission is to make it simple, fast and easy for Canadians to get
the investment, insurance and group benefits coverage they need to
build wealth, generate income, and achieve financial security.
Forward Looking
Statements
This press release may contain forward-looking information
within the meaning of applicable securities regulation. The words
"may", "will", "would", "should", "could", "expects", "plans",
"intends", "trends", "indications", "anticipates", "believes",
"estimates", "predicts", "likely" or "potential" or the negative or
other variations of these words or other comparable words or
phrases, are intended to identify forward-looking statements. These
statements include, without limitation, statements regarding the
settlement of purchases under the Offer. The Company believes the
expectations reflected in the forward-looking statements in this
press release are reasonable but no assurance can be given that
these expectations will prove to be correct and such forward-
looking statements should not be unduly relied upon.
Forward-looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties that may cause
the results or events mentioned in this press release to differ
materially from those that are discussed in or implied by such
forward-looking information. These risks and uncertainties include,
but are not limited to, general, local economic, and business
conditions. All forward-looking information in this press release
speaks as of the date hereof. The Company does not undertake to
update any such forward-looking information whether as a result of
new information, future events or otherwise. Additional information
about these assumptions and risks and uncertainties is disclosed in
filings with securities regulators filed on SEDAR+
(www.sedarplus.ca).
SOURCE E-L Financial Corporation
