(March 10 – 09:45 ET) – (March 10) – Institutional money manager Perigee Inc. is merging with Legg Mason Inc. of Baltimore.
The deal, which sees Legg Mason acquire all of Perigee’s outstanding shares at a ratio of 0.387 Legg Mason exchangeable shares for each Perigee share, remains subject to shareholder and regulatory approvals. The use of the exchangeable shares makes the deal a tax-free rollover and keeps the shares qualified as Canadian property. Perigee’s board unanimously recommends the deal that will give its shareholders about 8% of Legg Mason. The offering materials should be mailed by mid-April, with a shareholder vote in mid-May.
Alex Wilson, CEO and managing principal of Perigee, said, “Perigee initiated this merger to ensure that client needs for international asset management can be met by high-calibre professionals operating in international markets. This relationship with Legg Mason, a major U.S.-based asset manager, will enable Perigee to deliver to its Canadian clients an exceptional range of superior U.S. and international investment solutions.”
The combined firm will have $170 million in assets under management, with Perigee contributing $20.5 billion. Perigee says it will retain its unique brand and identity within the new firm, and it will continue to be managed by its Canadian principals.
Raymond Mason, chairman and CEO of Legg Mason, said, “We are delighted that Perigee, which is an outstanding Canadian money manager, has decided to join the Legg Mason family. Perigee, which has very competitive Canadian investment performance, will be our experts in the Canadian investment market and we look forward to working together to provide U.S. and international investment products and counsel to their Canadian clients.”
– IE Staff