Subsection 59(2) of Schedule 1 to the Regulation - reduction in fee otherwise due as aresult of a takeover bid in connection with a corporate reorganization involving nochange in beneficial ownership.
Securities Act, R.S.O. 1990, c.S.5, as am., s. 93(1)(c).
Regulation made under the Securities Act, R.R.O. 1990, Reg. 1015, as am. Schedule 1s.32(1), 59(2).
R.S.O. 1990, CHAPTER S.5, AS AMENDED (the "Act")
IN THE MATTER OF THE REGULATION UNDER THE SECURITIES ACT,R.R.O. 1990, REGULATION 1015, AS AMENDED (the "Regulation")
IN THE MATTER OF
1396164 ONTARIO LIMITED
(Section 59 of Schedule 1)
UPON the application (the "Application") of 1396164 Ontario Limited (the"Applicant") to the Director (the "Director") of the Ontario Securities Commission (the"Commission") for a ruling, pursuant to subsection 59(2) of Schedule 1 (the "Schedule")to the Regulation under the Act, exempting the Applicant from payment in part of the feepayable pursuant to clause 32(1)(b) of the Schedule;
AND UPON reading the Application and the recommendation of the staff of theCommission;
AND UPON the Applicant having represented to the Director as follows:
1. The Applicant is a corporation incorporated under the laws of Ontario and, is nota reporting issuer under the Act. The Applicant is a wholly-owned subsidiary of TheThomson Company Inc. ("TTCI").
2. On March 13, 2000, the Applicant acquired 299,986 common shares of TheThomson Corporation ("TTC") (the "Shares") from TTCI with the considerationtherefor being satisfied by common shares of the Applicant.
3. The Applicant and TTCI are both controlled by Kenneth R. Thomson and, as aresult, the Applicant and TTCI are affiliated corporations. Because the Applicantis deemed to own beneficially all of the TTC shares beneficially owned bycompanies controlled by Kenneth R. Thomson, the acquisition of the Shares by theApplicant resulted in the Applicant owning in excess of 20% of the outstandingcommon shares of TTC. Accordingly, the acquisition of the Shares by the Applicantconstituted a take-over bid under the Act.
4. The Shares were acquired pursuant to the take-over bid exemption in clause93(1)(c) of the Act.
5. The transaction was an internal corporate reorganization within the same controlgroup and did not result in a change in beneficial ownership of the Shares.
6. In the absence of the relief provided by this ruling and pursuant to the formula inclause 32(1)(b) of the Schedule, the Applicant would be required to pay a fee of$2,040.05 as a result of the transaction described above.
AND UPON the Director being satisfied that to do so would not be prejudicial to thepublic interest;
IT IS RULED, pursuant to subsection 59(2) of the Schedule, that the Applicant beexempt from the requirement to pay the fee otherwise payable pursuant to clause 32(1)(b)of the Schedule, provided that the minimum fee of $900.00 is paid.
March 28th, 2000.