(October 4 – 11:10 ET) – Montrusco Bolton Inc. has filed a takeover circular recommending its sale to First International Asset Management Inc. The circular reveals that First International may not have been Montrusco’s first choice.
Montrusco says it began looking for a buyer in early April, after deciding that the firm’s $10 billion in assets under management didn’t give it enough scale to compete in a climate of industry consolidation. Montrusco hired Scotia Capital to seek a strategic partner or purchaser.
During the week of April 10, Scotia Capital served up a list of candidates. However none of those early candidates made an offer for the firm and in May the list was expanded by 10 names, including First International.
In June, four candidates, including First International, made proposals. Scotia and the firm’s executive committee considered the proposals and determined First International’s to be the most attractive. The executive committee and First International agreed to exclusive negotiations, which was followed by some mutual due diligence. In July both parties signed a letter of intent agreeing to the principal terms for a proposed transaction. In August, BMO Nesbitt Burns weighed in with a fairness opinion declaring the agreement fair to shareholders and the board signed off on the deal.
Montrusco shareholders will receive $14.25 cash for each share. The shareholder meeting to consider the deal is set for November 6 at 11:30 ET in the Conference Center in Montreal.
-IE Staff