CI Financial Converts to an Income Fund

On June 30, 2006, CI Financial Inc. (CI) completed its reorganization into CI Financial Income Fund (the fund). With a market capitalization of more than $8.5 billion, the fund is Canada's largest business income fund and this transaction is the largest conversion to date in the business income fund sector.
The reorganization was completed by way of a plan of arrangement overwhelmingly approved by CI's shareholders. Each common share of CI was exchanged for either a unit of the fund or a unit of Canadian International LP and a special voting unit of the fund.
CI and the fund were represented by Michael Killeen, senior vice-president, general counsel and corporate secretary, assisted by a team from Goodmans LLP led by Stephen Pincus that included Francesa Guolo (corporate), Mitch Sherman and Carrie Smit (tax). John Kruk of McCarthy Tétrault LLP advised on certain regulatory matters, and Clay Horner of Osler, Hoskin & Harcourt LLP advised a special committee of CI's board.