(December 17 – 17: 45 ET) – Laurentian Bank has signed the Agreement of Purchase and Sale with Sun Life Assurance Company of Canada for the purchase of 100% of the common shares of the Sun Life Trust Company.
Based on the latest available financial information of Sun Life Trust as at October 31, 1999, the Company holds approximately $1.9 billion of assets after giving effect to a reorganization of the business of Sun Life Trust to occur prior to the closing date. Laurentian Bank would purchase 100% of Sun Life Trust’s issued and outstanding common shares and pay a cash purchase price of approximately $160 million. This price is based on a defined formula of adjusted net book value of the Trust plus $ 5 million.
The transaction is subject to reviews by the Competition Bureau and the Office of the Superintendent of Financial Institutions as well as review and approval by the Minister of Finance. Subject to these approvals, Laurentian Bank anticipates the transaction to close in early February 2000.
The Bank expects that the Sun Life Trust business will be integrated on the Bank’s systems within approximately five months after closing date. The addition of the acquired business, when fully integrated, should add approximately $0.08 to $0.12 to the net income per common share per quarter, or $0.32 to $0.48 per share on an annualized basis.
-IE Staff