DundeeWealth Inc.

DundeeWealth Inc.

January 17, 2007 11:58 ET

Dundee Wealth Management Inc. to Purchase Caisse de depot's 16% Interest in DWM Inc.

TORONTO, ONTARIO--(CCNMatthews - Jan. 17, 2007) - Dundee Wealth Management Inc. (TSX:DW) announces that it has not been possible to achieve an equitable settlement with the Caisse de depot et placement du Quebec ("CDP") so that CDP could continue as a 16% shareholder upon the proposed amalgamation of Dundee Wealth and its 84% owned subsidiary, DWM Inc. CDP owns 16% of DWM which is a private company that holds all of the assets of Dundee Wealth.

In accordance with a shareholders agreement relating to DWM, CDP exercised its put right on December 8, 2006 to have its minority interest purchased at an "en bloc" fair market value. Accordingly, Dundee Wealth and CDP are proceeding with the process of independent valuations of CDP's interest. Dundee Wealth has appointed GMP Securities as its independent valuator and CDP has appointed Genuity Capital.

The valuation process allows 30 days for each valuator to produce a valuation of DWM as of December 8, 2006. If these values are within 10% of each other, the simple average of their midpoint values is the price that Dundee Wealth will pay for CDP's interest in DWM. If the values are not within 10%, a third independent valuator will be chosen by the previous two, and a further 30 days is allowed for the third valuation. When that is completed the price will be the average of the midpoint values determined by each of the three independent valuators. The purchase price will be payable in three equal installments: one upon closing of the purchase, the second 60 days following closing, and the third 120 days following closing. Upon completion of the purchase process, Dundee Wealth will own 100% of DWM. The shareholders agreement also allows each party to select an independent arbitrator should there be any disagreement. Dundee Wealth has appointed Alan Lenczner of Lenczner, Slaght, Royce, Smith, Griffin for this purpose if required.

As previously announced, Dundee Wealth has arranged for a committed line of credit in the amount of up to $350 million with a Canadian chartered bank in order to provide funding for the purchase of CDP's interest. Dundee Wealth believes that with the bank commitment it has more than sufficient funds to meet the purchase obligation.

Dundee Wealth is a Canadian owned, TSX listed, innovative wealth management company. Through its various subsidiaries, including Dundee Bank of Canada, a Schedule I chartered bank, Dundee Wealth creates and provides investment solutions as well as capital markets and advisory services for financial advisors, institutions, corporations and foundations. Dundee Wealth oversees $57.8 billion in assets under management and administration through independent financial advisors across Canada.

Contact Information

  • Ned Goodman
    President and CEO
    Dundee Wealth Management Inc.
    (416) 365-5665
    Joanne Ferstman
    Chief Financial Officer
    Dundee Wealth Management Inc.
    (416) 365-5010