The first transaction is a private agreement between the two firms to repurchase and cancel 3.56 million shares. The deal is conditional on the second transaction, the sale of 7.12 million Class A shares through a syndicate led by RBC Capital Markets through a prospectus-free buyout deal block trade.
“Value creation through strategic and efficient capital allocation decisions is a fundamental pillar of Fierra Capital’s strategy,” said Jean-Guy Desjardins, Executive Chairman of the Board of Fiera Capital. Accordingly, buying shares from Natixis Investment Managers represents a unique opportunity. For us to buy back our shares at an attractive price that is in line with this vision, while also supporting our objectives under our normal course issuer bidding.”
A favorable decision was obtained to exempt Fierra Capital from issuer bidding requirements under applicable securities laws on share repurchases from Autorit des Marches financiers, which would be done at a discount pursuant to the decision.
Share sale does not end the relationship between the two firms.
Fiera Capital will remain as Natixis’ preferred Canadian distributor for its investment strategies (subject to certain modifications) as the firms have agreed to renew the distribution agreement originally signed in May 2019.