Arrow Capital plans strategic investment in W.P. Stewart

By Lisa Kerner

Charlotte, N.C., May 21 - W.P. Stewart & Co., Ltd. agreed to a strategic investment from Arrow Capital Management, LLC, through affiliated partnerships.

Arrow Capital will acquire up to 45% of W.P. Stewart's outstanding shares through a combination of a tender offer and the purchase of primary shares from the company, according to a W.P. Stewart news release.

Under the agreement, partnerships affiliated with Arrow Capital will make a cash tender offer for up to 19,902,000 W.P. Stewart shares, or some 36% of shares outstanding after the transaction, for a purchase price of $1.60 per share.

The partnerships also have committed to purchase a minimum of 5.01 million newly issued shares from W.P. Stewart for a purchase price of $1.60 per share.

According to W.P. Stewart, the tender is expected to begin no later than May 28.

The transaction is not subject to shareholder approval or financing conditions.

W.P. Stewart is an asset management company based in Hamilton, Bermuda.

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