GIVING UP: Natixis Investment Managers to Sell its Block of Fiera Capital Shares
Posted on 01/13/2022
Natixis Investment Managers saw promise in Fiera Capital Corporation back in 2019. In 2019, Natixis has strengthened its commitment to the Canadian market through the acquisition of an 11% stake in Fiera Capital Corporation. Natixis appears to be pulling back from the alignment.
Natixis Investment Managers Canada Holdings Ltd, a wholly-owned subsidiary of Natixis Investment Managers and BPCE SA (BPCE), has entered into two separate agreements to sell all of the 10.68 million class A subordinate voting shares that it currently holds in Fiera Capital Corporation.
Natixis Canada Holdings and Natixis Investment Managers Participations 1 have entered into a private agreement with Fiera Capital for the repurchase for cancellation of 3.56 million Class A Shares for an aggregate repurchase price of $34,888,000. In addition, Natixis IM will pay Fiera Capital a transaction fee.
Natixis Canada Holdings has also entered into an agreement with RBC Capital Markets pursuant to which Natixis Canada Holdings will sell, and RBC Capital Markets will acquire via a prospectus-exempt block trade bought deal, 7.12 million Class A Shares for aggregate proceeds of $69,776,000 (the “Block Trade Transaction”, and together with the Buy Back Transaction, the “Transactions”). In addition, Natixis IM will pay RBC Capital Markets a commission.
Immediately before the closing of the transactions, Natixis Canada Holdings owns 10.68 million Class A Shares, representing as of January 11, 2022 approximately 12.5% of the outstanding Class A Shares and approximately 10.2% of all outstanding shares of Fiera Capital. Upon completion of the transactions, Natixis Canada Holdings will no longer hold any shares of Fiera Capital. Effective upon closing of the transactions and as a result of the termination of the Investor Rights Agreement, Natixis Canada Holdings will no longer have any contractual right to propose any nominees to the Fiera Capital board of directors.
While Natixis Canada Holdings will no longer hold any Fiera Capital shares upon completion of the transactions, the distribution agreement entered in May 2019 between Natixis IM and Fiera Capital establishing Fiera Capital as Natixis IM’s preferred Canadian distributor for its investment strategies will remain in force, subject to certain amendments.
Keywords: Natixis, S.A., Royal Bank of Canada.
