On October 2, 2017, Seward & Kissel client Sprott Inc. announced an agreement to acquire Central Fund of Canada Limited.
Under the terms of the agreement, Sprott Inc. (“Sprott”) will acquire common shares of Central Fund of Canada Limited (“CFCL”) and obtain management rights of CFCL in exchange for C$105 million in cash and C$15 million of Sprott common shares . The controlling shareholders of CFCL will also receive a payment of at least C$5.0 million one year after the closing of the transaction. The transaction is expected to close in the first quarter of 2018, subject to regulatory and shareholder approvals.
Sprott (TSX: SII) is a Toronto-based global asset manager, providing investors with access to physical bullion trusts, mining ETFs, and other alternative asset management strategies in the precious metal and real asset space. The transaction is expected to increase Sprott’s assets under management to C$11.5 billion.
CFCL is a Canadian investment holding company that specializes in long term holdings of gold and silver bullion.
To read the press release: please click here.