(February 24 – 09:35 ET) – The shareholders of Vector Intermediaries Inc. have voted in favour of a proposed amalgamation with Canada Brokerlink Inc. It remains to be seen if Brokerlink wants Vector.
Brokerlink recently received a takeover bid from insurer Allianz. That bid is conditional on Brokerlink dumping the deal with Vector. Brokerlink’s board supports Allianz’s bid. It’s higher than an earlier one from Equisure Financial Network Inc.
Nevertheless Vector shareholders have supported the creation of a new class of convertible preferred shares to be used for the merger. Vector says its directors will continue to monitor the bids for Brokerlink, noting they are authorized to proceed with their proposed deal if need be.
Whether or not the deal goes ahead Vector says it remains well positioned as an insurance brokerage, with approximately $90 million in premium volume, the backing of TD Capital Group and the Ontario Teachers’ Pension Plan Board. It also has a $20 million loan facility with the CGU Group Canada Ltd., noting that $10 million of this is available for acquisitions.
-IE Staff