(May 9 – 10:45 ET) – Trimark Financial Corporation has entered into a merger agreement with AMVESCAP plc. The merger could result in the acquisition of all the common shares of Trimark by AMVESCAP in exchange for consideration valued at C$27 per share.
“Trimark is pleased to have the opportunity to partner with a global investment manager of AMVESCAP’s stature,” says Robert Krembil, chairman of Trimark. “We are extremely optimistic about the opportunities to grow our operations and enhance the products and services that we offer our customers – as well as provide interesting career opportunities for our employees. The merger of Trimark with AMVESCAP’s Canadian operation will combine two of the most trusted and respected brands in the market.”
“This transaction combines two excellent businesses – AIM and Trimark – to create a company with a leading position in the Canadian marketplace,” says Charles Brady, chairman and chief executive officer of AMVESCAP.
At March 31, 2000, Trimark’s funds under management were C$24.8 billion. Following the acquisition, AMVESCAP will have funds under management of approximately US$410 billion reinforcing its position as one of the largest independent investment management businesses in the world.
The merger will be established through a court sanctioned Plan of Arrangement, subject to a number of conditions, including: the receipt of necessary regulatory approvals, the approval of the Ontario Supreme Court, the approval of Trimark and AMVESCAP shareholders and the approval of unitholders of certain of the Trimark funds.
The board of directors of Trimark has unanimously determined that the transaction is fair to shareholders of Trimark and in the best interests of the company, and to unanimously recommend that shareholders vote in favour of the transaction. The board of directors came to these determinations based on the report of its special committee of independent directors and the opinion of RBC Dominion Securities Inc., the financial advisor to the special committee and the board of directors, that the Arrangement is fair, from a financial point of view, to Trimark shareholders.
Today, Trimark has also released its results for the year ended March 31. Revenue in 2000 dropped to $547,541,000 from $608,613,000 in 1999. Earnings per share fully diluted increased slightly to 97¢ from 92¢ last year. Earnings before interest, taxes,depreciation and amortization also dropped. In 2000 the figure was $298,605,000. In 1999, it was $336,844,000. Mutual fund assets under management increased in 2000 to $24,772,283 from $23,476,320 in 1999.
-IE Staff