Business & Finance
Business and Finance
Business and Finance
Wed, October 5, 2011 Jovian announces closing of the sale of MGI Financial to Desjardins Financial Security
TORONTO, Oct. 5, 2011 /CNW Telbec/ - Jovian Capital Corporation ("Jovian") (TSX: JOV) and Desjardins Financial Security ("DFS"), a subsidiary of Desjardins Group, are pleased to announce that, further to the announcement of August 11, 2011, they have completed the sale of Jovian's mutual fund dealer subsidiary, MGI Financial Inc. ("MGIF"), to DFS effective September 30, 2011, for a purchase price of $27 million. The transaction includes MGIF's various subsidiaries and approximately $10 million in subordinated debt owed to Jovian by MGIF.
Jovian's ownership interest in its IIROC-member investment dealer, MGI Securities Inc., is not part of the transaction.
"This transaction, along with the pending sale of our Horizons ETFs business, provides us with additional resources to focus on growing the enterprise value of our other investee companies, while also allowing us to look at new ways to create value for our shareholders," said Philip Armstrong, C.E.O. of Jovian. "We believe this transaction will ultimately benefit all of the parties involved."
"For some time now, we have been focused on expanding our business across Canada, and particularly in the West," said Denis Berthiaume, senior vice-president, Wealth Management and Life and Health Insurance of Desjardins Group and Chief Operating Officer of Desjardins Financial Security. "Thanks to MGI Financial's extensive distribution network, we will be able to achieve this goal. Similarly, MGI Financial advisors and clients will benefit from our support and resources as it also continues to grow."
About Jovian Capital Corporation ([ www.joviancapital.com ])
Jovian acquires, creates and grows financial services companies specializing in three primary market segments: wealth management, traditional asset managers, and exchange traded fund asset managers. The Jovian group of companies (AlphaPro Management Inc., BetaPro Management Inc., Hahn Investment Stewards & Company Inc., Horizons Exchange Traded Funds Inc., JovFunds Management Inc., JovInvestment Management Inc., Leon Frazer & Associates Inc., MGI Securities Inc., MGI Securities (USA) Inc. and T.E. Wealth) manages approximately $9.5 billion of client assets ($8.0 billion in assets under management and $1.5 billion in assets under administration). Additional information is available at [ www.joviancapital.com ] and [ www.sedar.com ].
About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the leading cooperative financial group in Canada, specializes in providing life and health insurance and retirement savings products to individuals and groups. Every day, over five million Canadians rely on Desjardins Financial Security to ensure their financial security. Desjardins Financial Security employs over 4,000 people and administers $27.4 billion in assets from offices in several cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's. For more information, visit the website at [ www.desjardinsfinancialsecurity.com ].
