E-L Financial Corporation Limited

E-L Financial Corporation Limited

September 24, 2009 17:05 ET

E-L Financial Corporation Limited Announces Acquisition of Common Shares of Algoma Central Corporation

TORONTO, ONTARIO--(Marketwire - Sept. 24, 2009) - E-L Financial Corporation Limited ("E-L") (TSX:ELF)(TSX:ELF.PR.F)(TSX:ELF.PR.G) announces that it has entered into a private agreement to acquire a further 519,188 common shares of Algoma Central Corporation ("Algoma") (TSX:ALC) from Scotia Investments Limited and its subsidiaries, increasing its ownership from 468,704 (12.05%) of the common shares to 987,892 (25.39%) of the common shares. E-L has an informal understanding with other shareholders of Algoma under which they act in concert with respect to the voting of securities of Algoma held by them. The purchase will increase the ownership of E-L and these other shareholders from 2,351,256 (60.42%) of the common shares to 2,870,444 (73.76%) of the common shares. The purchase price is $75.00 per common share. The 519,188 common shares represents all of the Algoma shares owned or controlled directly or indirectly by Scotia.

Mr. Duncan N.R. Jackman, Chairman, President and Chief Executive Officer of E-L says of the transaction: "The purchase, and E-L's holding of common shares of Algoma, is for investment purposes only. E-L may purchase further common shares from time to time, if in its judgment the shares represent a good investment in view of their price." E-L is relying on the exemption from the formal bid requirements set forth in section 100.1 of the Securities Act (Ontario) and section 4.2 of Multilateral Instrument 62-104 Take-Over Bids and Issuer Bids. The private agreement exemption is available as E-L's purchase of 519,188 common shares is made from not more than five persons or companies in the aggregate; the bid was not made generally to common shareholders of Algoma; and the value of the consideration is not greater than 115% of the market price of the common shares.

Contact Information

  • E-L Financial Corporation Limited
    Mark M. Taylor
    Executive Vice-President and Chief Financial Officer
    (416) 947-2578
    (416) 362-2592 (FAX)
    Scotia Investments Limited
    Archie W. MacPherson
    Vice President Finance
    (902) 835-7100
    (902)-835-8151 (FAX)