Industrial Alliance Mails Binding Offer for Clarington Corporation
Industrial Alliance Insurance and Financial Services Inc. ("Industrial Alliance") mailed its take-over bid circular yesterday in respect of its formal and binding offer to acquire 100% of the shares of Clarington Corporation ("Clarington"). As of the current date, the offer made by Industrial Alliance remains as the only formal and binding offer that has been made to Clarington shareholders.
"We are concerned about the confusing statements made by CI Financial ("CI") in the media and how it may mislead Clarington’s various stakeholders", said Normand Pépin, Executive Vice-President of Industrial Alliance. "Despite making public statements that an offer has already been made, both of CI’s recent press releases clearly state that a formal offer will only be made by way of a take-over bid circular, and as of today, we are the only company that has mailed a take-over bid circular to Clarington’s shareholders."
Based on comments CI made in its press releases, it is Industrial Alliance’s current understanding that CI is only prepared to proceed with a binding offer to Clarington shareholders if Clarington agrees to certain pre-conditions.
"We find it interesting that CI has not yet made a binding offer to Clarington shareholders", added Mr. Pépin. "Industrial Alliance is still waiting for a binding offer from CI to Clarington shareholders to show that they are indeed committed to this transaction."
Industrial Alliance chose to partner with Clarington because we value the people, products and goodwill that Clarington has established over the years. CI has been very clear that they want to merge Clarington funds into the CI fund family and keep little, if any, of Clarington’s people, products or infrastructure. Clarington unitholders would have to become part of a much larger fund complex and many of the unique features of the investment they purchased may disappear. In contrast, Industrial Alliance would keep Clarington substantially intact. As we noted in our press release of last Friday, investors chose Clarington funds for a reason. They did and always do have the option to buy funds from any competing fund company, including CI.
Industrial Alliance is committed to providing competitively priced products. Perhaps the best illustration of this is the fact that Industrial Alliance’s segregated fund line-up has expense ratios on average 40 to 50 basis points lower than comparable segregated funds offered by CI and its affiliates. Industrial Alliance will apply the same discipline to managing Clarington mutual funds as it does for its existing segregated funds, which over time is expected to result in significant improvements to expense ratios.
About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company that offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services. The fifth largest life and health insurance company in Canada, Industrial Alliance is at the head of a large financial group – the Industrial Alliance Group – which has operations across Canada as well as in the Northwestern United States. Industrial Alliance insures over 1.7 million Canadians, employs more than 2,600 people and manages and administers over $32 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG. Industrial Alliance is among the 100 largest public companies in Canada.
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This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities that may be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the company and management, as well as financial statements. The issuer intends to register the proposed offer in the United States under the Securities Act of 1933, as amended.
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Office phone: (418) 684-5275
Cell phone: (418) 576-3624