M and A

Scotiabank To Acquire DundeeWealth

Wendy Connett Editor New York November 23, 2010

Scotiabank To Acquire DundeeWealth

Scotiabank has agreed to make an offer for all of the common shares of DundeeWealth (82 per cent) that is doesn’t already own of the investment manager in a C$2.3 billion deal.

"The acquisition of DundeeWealth demonstrates our strong commitment to build our wealth management presence in Canada and aligns to our global wealth management strategy," said Rick Waugh, Scotiabank’s president and chief executive officer.

As previously reported by FWR, Scotiabank carved out global wealth management into a new fourth division in September. It also recently agreed to acquire Ontario-based The WaterStreet Group, a multi family office advisory firm.

Scotiabank has entered into a lock-up agreement with Dundee Corporation, the largest shareholder of DundeeWealth, which oversees $78.5 billion in fee earning assets. The acquisition is subject to shareholder and regulatory approval.

Ned Goodman, controlling shareholder of Dundee Corporation, and David Goodman, DundeeWealth’s president and chief executive officer, have both agreed to tender their DundeeWealth shares to the offer.

Dundee Corporation owns 48 per cent of DundeeWealth. On completion of the offer Scotiabank will own at least 67 per cent of DundeeWealth. After the completion of the offer, Scotiabank also expects to proceed with the acquisition of the balance of the common shares of DundeeWealth.

Ned Goodman will continue as non-executive chairman of DundeeWealth and as a sub-advisor managing Dynamic's Focus+ Resource Funds. David Goodman will remain DundeeWealth's president and chief executive officer and head the firm's investment management activities together with sales and distribution.

The bank has also been expanding its wealth management business globally. BNP Paribas agreed to sell its wealth management operations in the Bahamas, Grand Cayman and Panama to Scotiabank earlier this year, this publication reported.

Scotia Private Client Group launched in Jamaica and Miami, Florida last year as part of expansion plans it has for North, Central and South America, which was also previously reported by Family Wealth Report.


Register for FamilyWealthReport today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes