Saxon Financial Announces Sale to IGM Financial subsidiary Mackenzie Financial

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[{"type":"text","content":"\n\n\n\nTORONTO, Aug. 5 /CNW/ - Saxon Financial Inc. (TSX: SFI) today announced\nthat it has entered into a definitive agreement with IGM Financial Inc.\npursuant to which IGM Financial will make an offer to acquire all the issued\nand outstanding shares of Saxon by way of a take-over bid. Under the terms of\nthe offer, Saxon shareholders will be offered $21.00 per Saxon share in cash,\nvaluing the proposed transaction at approximately $287 million. Saxon will\nbecome a part of Mackenzie Financial Corporation ("Mackenzie") once the\ntake-over bid is completed.\n\n\n"This is a great opportunity for Saxon shareholders to realize\nsignificant value from their investment," said Bob Tattersall, President and\nCEO. "We see Saxon's goal as being aligned with that of Mackenzie - the\ncommitment to providing quality investment solutions to the marketplace. We\nlook forward to working with the Mackenzie team."\n\n\nThe offer represents a premium of approximately 69% to the volume\nweighted average trading price of Saxon's common shares on the TSX for the 20\ntrading days ending August 1, 2008, and a premium of approximately 65% over\nFriday's closing price of $12.70.\n\n\nIGM Financial has also entered into lock-up agreements with the Principal\nShareholders of Saxon, CMA Holdings Incorporated, Bob Tattersall and Rick\nHowson, by which they have agreed to tender their shares representing\napproximately 45.4% of Saxon's outstanding common shares.\n\n\nMackenzie intends to offer Saxon funds as a sub-brand on Mackenzie's\nretail platform. Bob Tattersall and Rick Howson have agreed to continue with\nthe combined organization and will actively lead the Howson Tattersall\ninvestment management team, which will continue to manage the Saxon funds.\nMessrs. Tattersall and Howson, the company's founders, will oversee their\npersonal succession plans, announced in 2005, through December 31, 2010.\n\n\n"This transaction will provide more resources to our investment, sales\nand servicing teams," said Mr. Howson. Charles R. Sims, President and Chief\nExecutive Officer of Mackenzie Financial and Co-President and CEO of IGM\nFinancial offered: "We believe that this acquisition enables us to enhance our\noffering to advisors and clients. Saxon has a proven capability in\nvalue-oriented equity and fixed income i...

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