DundeeWealth Inc.

DundeeWealth Inc.

December 29, 2006 12:25 ET

Dundee Wealth Reports on Special Shareholder Meeting to Approve Amalgamation

TORONTO, ONTARIO--(CCNMatthews - Dec. 29, 2006) - Dundee Wealth Management Inc. (TSX:DW) announces that at its meeting of shareholders held this morning, shareholders approved the amalgamation of Dundee Wealth with its 84% owned private company subsidiary DWM Inc. Dundee Wealth previously announced on December 8, 2006 that the Caisse de depot et placement du Quebec ("CDP"), the owner of 16% of DWM Inc. had exercised its put right to have its shares in DWM Inc. purchased by Dundee Wealth for cash.

Notwithstanding that the put right was exercised, and remains outstanding, Dundee Wealth proceeded to hold the meeting of its shareholders today, which meeting was called previous to December 8th for the purpose of approving the amalgamation.

The procedures surrounding the exercise of the put right are set out in the shareholders' agreement between the parties relating to DWM Inc. These procedures require the Company to purchase CDP's 16% interest in DWM Inc. for cash at its 'en bloc' fair market value, all as defined in the agreement. The calculation of fair market value under the agreement must be performed by independent valuators. These procedures have not yet been completed.

Accordingly, although shareholder approval for the amalgamation has been obtained, the Company is delaying the amalgamation at this time pending discussions with CDP, which are ongoing, and/or finalization of the put process. Further announcements will follow when appropriate.

"We are encouraged that shareholders voted 99.98% in favor of the amalgamation which would, subject to their acceptance, make CDP a significant shareholder of Dundee Wealth, eliminating the need for the private company subsidiary", stated Ned Goodman, President and Chief Executive Officer of Dundee Wealth.

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 $55.9 billion in assets under management and administration through independent financial advisors across Canada.

Contact Information

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