By Laura Lutz
Des Moines, Sept. 18 - DundeeWealth Inc. announced plans for a C$348.35 million private placement of stock.
The Bank of Nova Scotia (Scotiabank) has agreed to buy 27,300,000 shares at C$12.76 each.
The investment will give Scotiabank an 18% equity interest in DundeeWealth.
Scotiabank has also agreed to acquire DundeeWealth's banking unit, Dundee Bank of Canada, for C$260 million in cash. The private placement is being conducted in connection with that acquisition.
Following the acquisition and placement, DundeeWealth and Scotiabank plan to enter into a joint venture in the form of a three-year "white label" service agreement.
Settlement is expected on Sept. 28.
Proceeds of the stock offering will be used to reduce debt and for other corporate purposes.
DundeeWealth is a diversified wealth management company based in Toronto.
| Issuer: | DundeeWealth Inc.
|
| Issue: | Stock
|
| Amount: | C$348,348,000
|
| Shares: | 27,300,000
|
| Price: | C$12.76
|
| Warrants: | No
|
| Investor: | The Bank of Nova Scotia (Scotiabank)
|
| Pricing date: | Sept. 18
|
| Settlement date: | Sept. 28
|
| Stock symbol: | Toronto: DW
|
| Stock price: | C$12.10 at close Sept. 17
|
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