Dundee amends, increases bid for C$61 million series 2 preferreds

Chicago, Aug. 24 – Dundee Corp. announced amendments to its substantial issuer bid to purchase for cancellation from participating holders for all C$61 million of its cumulative five-year rate reset first preference shares, series 2, according to a news release.

The offer was initially for up to C$44 million of the preferreds.

A few of the largest investors that hold a total of 590,700 of the preferred shares have agreed to tender all such series 2 shares at a price of C$19.50 per share.

The offer was being made by way of a modified Dutch auction, which allowed participating holders to individually select the price, within a range of C$16.00 and C$18.50 per share in increments of C$0.10 per share.

The company will file a notice of variation to increase the price payable per share to a fixed price.

Additionally, noteholders who have their series 2 shares taken up and paid for by Dundee will receive a portion of the C$0.33025 dividend declared on the shares for the quarter ended Sept. 30, prorated to the payment date.

The offer will expire at 5 p.m. ET on Sept. 8, extended from 5 p.m. ET on Aug. 27.

Shareholders who previously tendered their series 2 shares will need to properly retender their shares. Previous tenders are no longer valid. Shareholders who have tendered their shares before the amendment should consider their tenders validly withdrawn.

Funding for the tender offer will come from cash on hand.

“We believe that the amended purchase price gives greater certainty for a successful bid, which locks in long term value for our shareholders,” said Jonathan Goodman, chairman and chief executive officer, in a news release.

RBC Dominion Securities, Inc. is the financial adviser. Cassels Brock & Blackwell LLP is the external legal adviser.

Kingsdale Shareholder Services is the information agent.

Computershare Investor Services Inc. is the depositary for the offer.

Dundee is a Toronto-based independent holding company. Through its operating subsidiaries, the company is engaged in business activities in the areas of investment advisory, corporate finance, energy, resources, agriculture, real estate and infrastructure.

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