This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

B2B Trust And AGF Management Limited Enter Into An Agreement For The Acquisition Of AGF Trust By B2B Trust

TORONTO, June 6, 2012 /CNW Telbec/ - B2B Trust, a subsidiary of Laurentian Bank (TSX: LB), and AGF Management Limited, (TSX: AGF.B), today announced that they have entered into an agreement under which B2B Trust will acquire 100% of AGF Trust Company ("AGF Trust") in a share purchase transaction. B2B Trust will acquire AGF Trust for a consideration corresponding to the net book value of the company at closing of approximately $242 million (subject to changes in net book value between now and closing) and will also cause AGF Trust to repay subordinated indebtedness owed to and redeem preferred shares held by AGF Management Limited, for a consideration of $173.5 million. The total amount of approximately $415.5 million will be paid in cash. The agreement also includes a contingent consideration of a maximum of $20.0 million over five years if credit quality reaches certain criteria.

The transaction is expected to close in August 2012 subject to applicable regulatory notifications and approvals.

AGF Trust will be integrated with B2B Trust and will provide the Canadian financial advisory and mortgage brokerage communities with best-in-class products and services to meet their unique needs. The combined entities will serve more than 27,000 advisors.

AGF Trust currently provides GICs, term deposits, investment loans and real estate secured loans through some 20,500 financial advisors and 1,050 mortgage brokers nation-wide. Total asset loan equal approximately $3.1 billion of which $1.8 billion is comprised of investment and RRSP loans and $1.1 billion mortgage loans.

B2B Trust is recognized for its competitive array of banking products, including investment and RRSP loans, deposits, investment accounts and residential mortgages. B2B Trust's loan and deposit portfolios total $6 billion and $10 billion, respectively. With the acquisition of AGF Trust, B2B Trust's loan portfolio will increase by approximately 50%, while deposits will increase by 30%.

"The acquisition of AGF Trust certainly proves that B2B Trust is, and will always be, 100% committed to meeting the needs of the financial advisory community", said François Desjardins, President and CEO of B2B Trust. "We have been in a period of growth for the past several years now, and with the inclusion of AGF Trust's portfolio and services, B2B Trust will be well-positioned to continue developing industry-leading solutions."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%
TSLA $241.80 0.43%
YHOO $36.53 -0.19%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs