Integrated Asset Management Corp.
TSX VENTURE : IAM

Integrated Asset Management Corp.

December 20, 2006 10:46 ET

Integrated Asset Management Corp. Announces Intention to Acquire Remaining Common Shares of BluMont Capital Inc.

TORONTO, ONTARIO--(CCNMatthews - Dec. 20, 2006) - Integrated Asset Management Corp. ("IAM")(TSX VENTURE:IAM) today announced that its board of directors has determined to take such action as is necessary, including causing a special meeting of shareholders of BluMont Capital Inc. ("BluMont")(TSX VENTURE:BCC) to be convened to consider an amalgamation or other transaction involving BluMont and IAM or an affiliate of IAM, to enable IAM to undertake a subsequent acquisition transaction to acquire all of the outstanding common shares of BluMont that IAM does not already own (the "Subsequent Acquisition Transaction"). In connection with the Subsequent Acquisition Transaction, the consideration to be offered by IAM will be approximately 0.357 common shares of IAM for each common share of BluMont held (or one common share of IAM for each 2.8 common shares of BluMont held). IAM anticipates that, if approved, the Subsequent Acquisition Transaction would be completed on or before March 9, 2007.

IAM currently owns, directly or indirectly, 20,509,274 common shares of BluMont or approximately 61.4% of the outstanding common shares of BluMont.

Pursuant to its formal exchange offer for any and all of the issued and outstanding common shares of BluMont that IAM did not already own (the "Offer"), which expired on November 10, 2006, IAM acquired an aggregate of 5,075,941 BluMont common shares on the basis of one third of one common share of IAM for each common share of BluMont tendered.

Subject to receipt of all necessary regulatory approvals, and conditional upon the completion of the Subsequent Acquisition Transaction, IAM intends to supplement the consideration paid to those shareholders of BluMont that tendered to, and had their shares taken up by IAM under the Offer, by issuing an additional approximately 0.024 common shares of IAM for each common share of BluMont tendered such that those shareholders will in total receive one common share of IAM for each 2.8 common shares of BluMont already tendered. There can be no assurances that such approvals will be obtained.

In order to become effective, any Subsequent Acquisition Transaction will require, among other things, approval by at least 66 2/3% of the votes cast by BluMont shareholders and the approval of a majority of the votes cast by "minority" holders of common shares of BluMont at a special meeting called for such purpose. The BluMont shares owned by IAM prior to the Offer will be excluded from the minority for these purposes, but the shares acquired by IAM under the Offer are expected to be eligible to be counted towards the requisite minority approval. IAM will cause all common shares of BluMont owned directly or indirectly by it to be voted in favour of the Subsequent Acquisition Transaction.

IAM has entered into a support agreement with a BluMont shareholder who owns, directly or indirectly, approximately 1.6 million BluMont common shares. Under the terms of the support agreement, the shareholder has agreed to vote or to cause to be voted all of the common shares of BluMont owned by such shareholder in favour of a Subsequent Acquisition Transaction on the proposed share exchange ratio referred to above, subject to certain terms and conditions.

There can be no assurances that any Subsequent Acquisition Transaction will be completed on the basis proposed, or at all.

IAM is Canada's leading alternative asset management company, with approximately $3 billion in assets and committed capital under management in private debt, private equity, managed futures, real estate and hedge funds.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Integrated Asset Management Corp.
    Stephen Johnson
    Chief Financial Officer
    (416) 360-7667
    Email: sjohnson@iamgroup.ca