(March 10 – 14:20 ET) – Strategic Value Corp.’s main shareholders, founder Mark Bonham and Investec Group Ltd., are selling out to Nova Bancorp Group Ltd.
Nova will acquire all of SVC’s class A and B shares at $3.25 per share. Bonham owns 34.57% of the firm and Investec Group Ltd. owns 23.46%. The deal is subject to board, shareholder, court and regulatory approval.
As part of the deal, Bonham will buy out the management subsidiary that bears his name, Bonham & Co. Inc. It will continue to provide sub-advisory portfolio management to certain SVC funds under a deal with Nova.
“This transaction offers value to shareholders and relatively seamless portfolio management to unitholders and their advisors,” said Bonham, chairman and CEO of SVC. “All Bonham & Co. employees will be retained to participate in the firm’s new opportunities for future growth. Our five-year track record combined with our dedicated professional team will be tremendous assets as we move forward to expand our relationships with pension funds, private clients and other institutional customers.”
Harry Knutson, chairman of Nova Bancorp, said, “Our primary focus will be the unitholders and their advisors. We are committed to providing them with leading-edge investment products, outstanding investment performance and best-of-class service levels.”
It has been known for some time that Strategic Value was on the block, as are most fund companies in Canada right now. It has about $3.5 billion under management in 30 funds, and last year bought rival O’Donnell Investment Management Inc.
“The Canadian mutual fund industry will continue along its trend toward consolidation,” said Bonham. “Each firm will have to make the strategic decision to focus on what they do best. We have enjoyed a solid track record of success and look forward to building Bonham & Co., with the same discipline and strength.”
– IE Staff