Third Canadian General Investment Trust Limited
TSX : THD

Third Canadian General Investment Trust Limited

September 26, 2011 18:42 ET

Third Canadian General Investment Trust Limited Announces Amount of Cash Consideration to Be Received Per Share Under Plan of Arrangement

TORONTO, CANADA--(Marketwire - Sept. 26, 2011) - Third Canadian General Investment Trust Limited ("Third Canadian" or the "Company") (TSX:THD) and Third Canadian Holdings #1 Limited ("Holdings #1") announced today that pursuant to the previously announced July 29, 2011 acquisition agreement ("the Acquisition Agreement") providing for the acquisition by Holdings #1 of all of Third Canadian's issued and outstanding common shares (the "Shares") not already owned by Holdings #1 and its affiliates and associates by way of a plan of arrangement under the Canada Business Corporations Act (the "Arrangement"), each Third Canadian minority shareholder will be entitled to receive cash consideration per Share equal to $41.07 if the Arrangement is approved by shareholders and the court and is implemented.

Under the terms of the Acquisition Agreement, the cash consideration each Third Canadian minority shareholder is entitled to receive per Share is equal to the "Adjusted NAV" calculated on September 26, 2011, being the day that is four business days prior to the meeting of shareholders of the Company which has been called for September 30, 2011 to consider the Arrangement (the "Meeting"). "Adjusted NAV" pursuant to the Acquisition Agreement means in effect the net asset value of the Shares of the Company, reflecting the value of the Company's holdings in its principal assets (Canadian General Investments, Limited and Canadian World Fund Limited) at each of their respective underlying net asset values, less 5% of such aggregate amount. The net asset value has been calculated in accordance with the valuation principles set out in the Company's Annual Information Form and consistent with past practice, with the exception of the above treatment for the principal assets. Generally, publicly traded securities held by the Company, which includes the principal assets, are valued based on their closing market prices. Historically, the market prices for the principal assets have been significantly less than their net asset values. The net asset value per Share of the Company at September 26, 2011 as calculated by Morgan Meighen & Associates Limited, the Manager of the Company, is $36.87. As at September 26, 2011, Adjusted NAV (i.e., the consideration to be received by a shareholder) is $41.07 per Share, which represents a premium of approximately 2.7% per Share based on the $40.00 closing price of the Shares on the Toronto Stock Exchange on September 26, 2011 (or a premium per Share of approximately 11.4% based on the net asset value per Share at September 26, 2011).

The Company will make further announcements regarding the voting at the Meeting and the approval by shareholders and the court and the implementation of the Arrangement, as appropriate.

About Third Canadian

Third Canadian, established in 1928, is the second oldest North American listed closed-end fund. The Company's largest holdings are principal assets, Canadian General Investments, Limited and Canadian World Fund Limited. Its non-principal assets consist of a diverse range of Canadian and foreign securities.

Contact Information

  • Third Canadian General Investment Trust Limited
    Jonathan A. Morgan
    President and CEO
    (416) 366-2931
    (416) 366-2729 (FAX)

    Third Canadian General Investment Trust Limited
    Vanessa L. Morgan
    Chairman
    (416) 366-2931
    (416) 366-2729 (FAX)
    thdfund@mmainvestments.com
    www.mmainvestments.com