DundeeWealth Inc.

DundeeWealth Inc.

February 19, 2007 17:31 ET

Dundee Wealth Management Inc. Acquires 100% Ownership of Its Subsidiary DWM Inc.

TORONTO, ONTARIO--(CCNMatthews - Feb. 19, 2007) - Dundee Wealth Management Inc. (TSX:DW) ("Dundee Wealth") announces that it has reached an agreement with the Caisse de depot et placement du Quebec ("Caisse") for the purchase of Caisse's 16.3% interest in DWM Inc. DWM is a private company which is owned 83.7% by Dundee Wealth and which holds all the assets of Dundee Wealth.

Pursuant to the agreement, Dundee Wealth will acquire Caisse's interest in DWM Inc. in exchange for 11 million common shares of Dundee Wealth and $154.5 million in cash. The agreement will result in DWM becoming a 100% subsidiary of Dundee Wealth, the termination of the put and valuation process in respect of Caisse's interest previously announced on January 17, 2007, and will also result in the termination of the 2002 shareholders agreement between Dundee Wealth and Caisse. Dundee Wealth has entered into a $350 million revolving credit facility with a Canadian chartered bank in part to provide funding for this purchase. The transaction is subject to regulatory approvals and is expected to close shortly.

"Caisse has been a shareholder and partner of ours since 2002 and we are pleased that we have come to an agreement with them that allows them to remain a 9% shareholder of our company," stated Ned Goodman, President and Chief Executive Officer of Dundee Wealth.

"We have supported Dundee Wealth Management Inc. through our investment in DWM Inc. over the past 4 and a half years and have seen the company develop and our investment grow" stated Normand Provost, Senior Vice-President, Private Equity at the Caisse. "While we are reducing our interest in DWM Inc., we are glad to remain an important shareholder of the company."

Dundee Wealth is a Canadian owned, 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 $59.0 billion in assets under management and administration through independent financial advisors across Canada. It is listed on the Toronto Stock Exchange (TSX:DW).

Contact Information

  • Ned Goodman
    President and CEO
    (416) 365-5665
    Joanne Ferstman
    Chief Financial Officer
    (416) 365-5010