Scotiabank to Acquire DundeeWealth

November 24, 2010

Scotiabank and DundeeWealth jointly announced on November 22, 2010 that Scotiabank has agreed to purchase the 82% of DundeeWealth it does not already own for C$2.3 billion.


On November 22, 2010, Bank of Novia Scotia (“Scotiabank”) and DundeeWealth Inc. (“DundeeWealth”) jointly announced that Scotiabank, Canada’s third-largest bank, has agreed to purchase the 82% of DundeeWealth it does not already own for C$2.3 billion.  Under the deal terms, Scotiabank will pay C$21 for each DundeeWealth common share in cash or stock representing an enterprise value for DundeeWealth of approximately C$3.2 billion.  Scotiabank will offer 0.2497 of a Scotiabank common share plus either C$5 in cash or 0.2 of a C$25, 3.70% five year rate reset Scotiabank preferred share for each DundeeWealth common share.  Prior to closing, DundeeWealth shareholders will also receive a special distribution of C$2 per share in cash as well as an interest in Dundee Capital Markets, with an approximate value of C$0.50 per DundeeWealth share, which DundeeWealth will spin out to its shareholders in connection with the transaction.  The transaction is subject to DundeeWealth shareholder approval and other customary closing conditions including the receipt of all necessary regulatory approvals.

For the press release, please click here.

For the further details, please click here and here.


Categories

Investment Manager M&A, Transactions