Toronto-based Matrix Asset Management Inc. (TSX:MTA) said Monday evening it is targeting July 12 as the closing date for the previously announced proposed sale of the operating assets (excluding working capital) of Halifax-based Seamark Asset Management Ltd., a subsidiary of Matrix.
As previously announced, Matrix has agreed to sell the Seamark assets to a newly formed company (New Seamark) owned by Robert McKim, the chief investment officer and a director of Seamark, and Toronto-based Marquest Asset Management Inc., a party at arm’s length to Matrix. McKim will indirectly own 67% of the outstanding shares of New Seamark and Marquest will own the remaining 33%. (See Investment Executive, Marquest, Matrix deal one step closer, June 5, 2013).
While Matrix, Marquest andMcKim have entered into binding term sheets in respect of the Seamark sale, closing of the transaction remains subject to customary closing conditions, including obtaining TSX and regulatory approvals. Matrix reminds investors there can be no assurance that the transaction will be completed on the terms proposed or at all.
As previously announced, the Seamark sale has a transaction value of approximately $1.62 million. As part of the Seamark dale, New Seamark will acquire the right to use the name “Seamark Asset Management Ltd.” and will apply to change its name to “Seamark Asset Management (2013) Ltd.” Seamark proposes to change its name to “GrowthWorks Enterprises Ltd.”, to become effective as of closing.
It is anticipated that management of the Matrix group of investment funds (the Matrix Funds) will move from Growth Works Capital Ltd.’s Matrix Funds Management division to Seamark on or about July 16.
Seamark is an affiliate of Growth Works Capital Ltd. and currently provides sub-advisor services to a number of the Matrix Funds. It is anticipated that there will be no change to the individuals performing fund and portfolio management activities for the Matrix Funds in connection with the transfer of management to Seamark. For those Matrix Funds which engage Seamark as sub-advisor, the same individuals currently performing those sub-advisory services through Seamark will provide those services through New Seamark following closing of the Seamark sale.
The transition of management of the Matrix Funds to Seamark is not expected to impact the previously announced change of manager of the Matrix Funds to Marquest.
In June, Marquest Asset Management Inc. announced it had entered into binding agreements to purchase 100% of the portfolio management, custodian and related contracts of the Matrix Group of Mutual Funds of the Matrix Funds Management operating division of Growth Works Capital Ltd.
Upon closing of the Marquest transaction, management of the Matrix Funds would move from Seamark to Marquest.