TORONTO, Dec. 17, 2020 /CNW/ - E-L Financial
Corporation Limited (TSX: ELF) (TSX:ELF.PR.F) (TSX: ELF.PR.H) (the
"Company") announced today the preliminary results of its
"modified Dutch auction" substantial issuer bid (the "SIB").
Under the SIB, the Company offered to purchase for cancellation up
to $100 million of its common shares
(the "Shares") from Shareholders for cash. The SIB expired
at 11:59 p.m. (Toronto time) on December 16, 2020.
Based on the preliminary count by Computershare Trust Company of
Canada, as depositary for the SIB,
the Company expects to take up and pay for approximately 109,863
Shares at a price of $750 per Share
under the SIB, representing an aggregate purchase price of
approximately $82 million and 2.9% of the total number of the
Company's issued and outstanding Shares before giving effect to the
The full details of the SIB are described in the issuer bid
circular dated November 9, 2020, as
well as the related letter of transmittal and notice of guaranteed
delivery, copies of which were filed and are available on SEDAR at
As the total number of Shares tendered was less than the total
that could have been acquired by the Company under the terms of the
SIB, all Shares validly deposited and not withdrawn prior to the
expiry of the SIB will be acquired at the maximum purchase price
offered under the SIB and no proration will be required.
After giving effect to the SIB, E-L Financial expects to have
3,708,576 Shares issued and outstanding.
The number of Shares to be purchased and the purchase price
under the SIB are preliminary. Final results will be determined
subject to confirmation by the depositary of the proper delivery of
the Shares validly tendered and not withdrawn. Upon take up and
payment of the Shares purchased, the Company will release the final
This press release is for informational purposes only and does
not constitute an offer to buy or the solicitation of an offer to
sell the Company's Shares.
About E-L Financial Corporation Limited
E-L Financial operates as an investment and insurance holding
company. In managing its operations, the Company distinguishes
between two operating segments, E-L Corporate and Empire Life.
E-L Corporate represents investments in stocks and fixed income
securities held directly and indirectly through pooled funds,
closed-end investment companies and other investment companies. The
investment strategy is to accumulate shareholder value through
long-term capital appreciation and dividend and interest income
from its investments.
Empire Life is a subsidiary of the Company. Since 1923, Empire
Life has provided individual and group life and health insurance,
investment and retirement products to Canadians. Empire Life's
mission is to make it simple, fast and easy for Canadians to get
the investment, insurance and group benefits coverage they need to
build wealth, generate income, and achieve financial security.
Forward Looking Statements
This press release may contain forward-looking information
within the meaning of applicable securities regulation. The words
"may", "will", "would", "should", "could", "expects", "plans",
"intends", "trends", "indications", "anticipates", "believes",
"estimates", "predicts", "likely" or "potential" or the negative or
other variations of these words or other comparable words or
phrases, are intended to identify forward-looking statements. These
statements include, without limitation, statements regarding the
terms and conditions of the Offer, including the aggregate number
of Shares to be purchased for cancellation under the Offer, the
final purchase price under the Offer and the number of Shares
expected to be issued and outstanding after completion of the
Offer. The Company believes the expectations reflected in the
forward-looking statements in this press release are reasonable but
no assurance can be given that these expectations will prove to be
correct and such forward- looking statements should not be unduly
relied upon. Forward-looking information is based on a number of
assumptions and is subject to a number of risks and uncertainties
that may cause the results or events mentioned in this press
release to differ materially from those that are discussed in or
implied by such forward-looking information. These risks and
uncertainties include, but are not limited to, general, local
economic, and business conditions. All forward-looking information
in this press release speaks as of the date hereof. The Company
does not undertake to update any such forward-looking information
whether as a result of new information, future events or otherwise.
Additional information about these assumptions and risks and
uncertainties is disclosed in filings with securities regulators
filed on SEDAR (www.sedar.com).
SOURCE E-L Financial Corporation Limited