Stephan Altmann

This is a supplementary endorsement on costs following a fair value application.

The applicant, 1843208 Ontario Inc., was largely successful in the underlying application, with the court determining the fair value of shares at $1.50, significantly lower than the $8.91 sought by the dissenting shareholders.

The dissenting shareholders argued against paying costs, citing that the determined value exceeded the company's initial formal offer and their success on the interest issue.

The court found the dissenting shareholders' valuation position unreasonable and unrealistic, and their success on interest minor.

Applying the principles of costs, particularly that dissenting shareholders do not get a "free ride" in valuation proceedings, the court awarded the applicant $1,075,000 in costs, inclusive of fees, disbursements, and taxes, payable by the dissenting shareholders.

The applicant, 1843208 Ontario Inc., sought to fix the fair value of shares of dissenting shareholders of Baffinland Iron Mines Corporation at $1.50 per share following a plan of arrangement.

The Dissent Group argued for a fair value of $8.91 per share.

The court found that the market price of $1.50, established through a contested takeover bid process, was the best objective evidence of fair value, rejecting the Dissent Group's higher valuation which relied on a discounted cash flow analysis based on unproven mineral resources and overly optimistic projections.

The court also awarded interest to the Dissent Group for the entire period, including a significant delay caused by a stay of proceedings related to a class action.