Toronto-based Sprott Inc. and Sprott Asset Management LP are urging shareholders in Central Fund of Canada Ltd. (CFCL) to vote for the arrangement that would allow Sprott to acquire common shares of the CFCL during a special meeting next week.
In addition to acquiring common shares, Sprott would have the right to administer and manage CFCL’s assets and move CFCL’s class A shareholders to a new Sprott-managed Sprott Physical Gold and Silver Trust, the firm says in a news release.
Proxy advisory firms Rockville, Md.-based Institutional Shareholder Services Inc. and San Francisco-based Glass, Lewis and Co., LLC are also recommending that CFCL shareholders vote in favour of the arrangement.
“The transaction with Sprott, recommended by the Central Fund board of directors and supported by the two leading proxy advisory services, represents a tremendous opportunity for all shareholders,” says John Ciampaglia, CEO of Sprott Asset Management, in a statement.
“The new Sprott Physical Gold and Silver Trust will include best in class redemption features and is expected to unlock more than US$300 million in value,” he adds. “In addition, shareholders will benefit from Sprott’s global brand recognition and experienced management team.”
The meeting of CFCL shareholders of Class A shares and common shares will be held on Nov. 30 at 1 p.m. MT in Calgary. Shareholders can call New York-based Innisfree M&A Inc. at (877) 750-5837 for assistance with the voting process.