(December 20 – 09:10 ET) – The Ontario Securities Commission has released the decision allowing AIC Ltd. to contemplate a possible competing bid for Mackenzie Financial Corp.

AIC had to apply to the OSC for relief from various restrictions in securities law and possible roadblocks that would prevent it from tabling an offer, since its funds hold a large portion of both Mackenzie and C.I. Fund Management Inc.

The relief was granted in a decision dated December 7, by a two-member panel of Robert Korthals and Jack Geller. The decision lays out the corporate structure erected by AIC to facilitate a bid. It would set up a holding company that would own both AIC and Mackenzie. It expects that the new company would list on the Toronto Stock Exchange.

CDP Financial Services, a subsidiary of the Caisse de dépôt et placement du Québec, will invest in the new firm to facilitate the bid. According to the decision, it will “provide cash funding in excess of $300 million to be used in the offer”, and it would also pledge its 5% interest in Mackenzie. The rest of the cash funding for the offer will come from bank debt, for the offer which will be a mix of cash and shares.

The offer will be subject to the condition that listing approval for the new firm’s shares is received from the TSE. The receipt of such listing approval will be promptly announced by way of a news release and otherwise as appropriate.
-IE Staff