Canadian General Investments, Limited
TSX : CGI.PR.A
TSX : CGI.WT
TSX : CGI
TSX : CGI.PR.B
LSE : CGI
LSE : CGIW
TSX : CGI.PR.C

Canadian General Investments, Limited

May 23, 2006 17:51 ET

Canadian General Investments, Limited: Substantial Issuer Bid for Warrants

TORONTO, CANADA--(CCNMatthews - May 23, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

Canadian General Investments, Limited (the "Company") (TSX:CGI)(TSX:CGI.PR.A)(TSX:CGI.PR.B)(TSX:CGI.PR.C)(TSX:CGI.WT)(LSE:CGI)(LSE:CGIW) today announced a substantial issuer bid to purchase all of its outstanding common share purchase warrants.

Warrantholders can tender their warrants for a cash price of $22.35 per warrant upon the terms and subject to the conditions set forth in the offer to purchase to be contained in an issuer bid circular which will be filed with applicable Canadian securities regulators and mailed to warrantholders. The Company expects to mail the circular on or about May 25, 2006. The Company advises its warrantholders to read the circular when it is available, as it contains important information. The offer will expire on June 30, 2006 unless withdrawn or extended by the Company.

Based in part on the recommendation of a Special Committee of independent directors, the Board of Directors unanimously authorized and approved the offer, with interested directors abstaining. Crosbie & Company Inc. an independent valuator, prepared and delivered to the Special Committee a valuation of the warrants on May 23, 2006 and a fairness opinion. Crosbie concluded that, as at May 23, 2006, the fair market value of the warrants is in the range of $22.32 to $22.39 per warrant. In addition, Crosbie is of the opinion that the offer is fair, from a financial point of view, to the "minority" holders of warrants and common shares of the Company. The closing price per warrant on May 17, 2006 on the TSX, the last day preceding the announcement of the offer on which the warrants were traded on the TSX, was $22.50.

The Company has been advised that The Catherine and Maxwell Meighen Foundation and Third Canadian General Investment Trust Limited, Jonathan Morgan, and Vanessa Morgan, who collectively hold, directly or indirectly, or control or direct, approximately 74% of the outstanding warrants, intend to tender their warrants to the offer.

Canadian General Investments, Limited, established in 1930, is one of Canada's largest listed closed-end investment companies with total portfolio assets of approximately $845 million.

Contact Information

  • Canadian General Investments, Limited
    Jonathan A. Morgan
    President & CEO
    (416) 366-2931
    (416) 366-2729 (FAX)
    or
    Canadian General Investments, Limited
    Frank Fuernkranz
    Assistant Treasurer
    (416) 366-2931
    (416) 366-2729 (FAX)
    cgifund@mmainvestments.com
    www.mmainvestments.com