TORONTO – August 5, 2008: IGM Financial Inc. (TSX:IGM) today announced that it has entered into definitive agreements with Saxon Financial Inc. (TSX:SFI) under which IGM Financial will offer to acquire all the common shares of Saxon by way of a take-over bid with the support of Saxon’s Board of Directors. IGM Financial has also entered into lock-up agreements with principal shareholders of Saxon, CMA Holdings Incorporated, Bob Tattersall and Rick Howson, by which they have agreed to tender their shares representing approximately 45.4% of Saxon’s outstanding common shares. Saxon will become a part of Mackenzie Financial Corporation (“Mackenzie”) once the take-over bid is completed.
The acquisition of Saxon further enhances Mackenzie’s investment management capabilities and provides Mackenzie with approximately $13 billion in investment advisory mandates to a number of mutual fund, institutional, and high net worth investors. Saxon is well-known for its disciplined value investment philosophy in the management of Saxon Mutual Funds, established in 1985. Saxon’s institutional and private client businesses operate under the brand name of Howson Tattersall.
Saxon has a strong relationship with CMA Holdings, and particularly, MD Financial, a subsidiary of CMA Holdings. Mackenzie will enter into long-term agreements with CMA Holdings and MD Financial designed to continue and strengthen these relationships.
Charles R. Sims, President and Chief Executive Officer of Mackenzie and Co-President and CEO of IGM Financial said: “We believe that this acquisition enables us to enhance our offering to advisors and clients. Saxon has a proven capability in value-oriented equity and fixed income investing across the retail, institutional and high net worth client segments.”
Rick Howson, CIO and Bob Tattersall, President and CEO of Saxon are well regarded and have built a strong, highly disciplined investment team over the past 20 years. Both Howson and Tattersall have agreed to continue with the combined organization and will actively lead the Howson Tattersall investment management team through 2010 and oversee their personal succession plans announced in 2005.
Saxon shareholders will be offered $21.00 per Saxon share payable in cash.
"This is a great opportunity for Saxon shareholders to realize significant value from their investment," said Tattersall. "We see Saxon's goals as being aligned with those of Mackenzie. We share a commitment to providing quality investment solutions to the marketplace. We look forward to working with the Mackenzie team."
The offer will be made by a formal take-over bid circular, which is expected to be mailed to Saxon shareholders in mid-August. The transaction is anticipated to close on or before September 30, 2008, subject to required regulatory notifications and approvals.
IGM Financial Inc. is one of Canada's premier personal financial services companies, and one of the country’s largest managers and distributors of mutual funds and other managed asset products, with $116.8 billion in total assets under management. Its activities are carried out principally through Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Corporation group of companies.
About Saxon Financial:
Saxon Financial Inc. is one of Canada’s most respected value-style investment management firms. The Company has three principal businesses: Saxon Funds Management Limited, which manages a family of high-performing mutual funds; Howson Tattersall Investment Counsel Limited, an institutional asset management business; and Howson Tattersall Private Asset Management Inc., a private client asset management business.
For more information, please contact:
Catharine Marion
Environics Communications Inc.
416-969-2809
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