The Canadian Press
CALGARY - Olympia Financial Group Inc. (TSX:OLY) has agreed to sell its transfer agency and corporate trust assets to Computershare Trust Company of Canada for $43 million in cash.
Olympia says that after paying executive management profit sharing entitlements and closing costs, it anticipates receiving after-tax net proceeds of about $29.6 million.
The Calgary-based concern said the purchase price could be reduced post closing by up to $7.5 million in the event that net revenue lost from terminated client agreements exceeds net revenue gained from new business agreements during the one-year period following the closing date.
"We are very pleased with the value that this transaction brings to our shareholders and the opportunities that it brings for our employees within this division" president and CEO Rick Skauge said in announcing the deal after markets closed on Friday.
"While it is always hard to part with such dynamic and talented employees, management believes that Computershare is the best entity to service our clients in an industry that has consolidated in recent years and is moving toward more technologically advanced platforms."
Olympia Financial Group Inc. conducts most of its operations through its wholly owned subsidiary Olympia Trust Co., a non-deposit taking trust company that operates in most provinces across Canada. It administers self-directed registered accounts, acts as a registrar and transfer agent for public and private issuers and offers foreign currency exchange services. OFGI also offers private health services plans through its wholly-owned subsidiary Olympia Benefits Inc.