Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Private-equity firm Onex Corp. is buying Gluskin Sheff + Associates Inc. (GS-T) one of Canada’s last remaining independent wealth managers, in a $445-million deal.
The Onex offer of $14.25 a share represents a 28-per-cent premium to Friday’s closing price of $11.17, but Gluskin Sheff is agreeing to be sold at less than half its peak value of early 2014.
In Friday’s announcement, Onex chairman and chief executive Gerry Schwartz said combining Gluskin Sheff’s investing platforms in publicly traded securities with Onex’s private-equity and private-debt platforms will give clients of both firms “greater investment options.”
Gluskin Sheff CEO Jeff Moody said the two firms have “a strong cultural fit and a like-minded approach to investing and risk management.” Gluskin Sheff clients will get access to Onex alternative investment strategies, he added.
- David Milstead and Andrew Willis
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BSR Real Estate Investment Trust (HOM.U-T) announced an agreement to purchase Wimberly Apartments in Dallas for US$53.05 -million. “The addition of Wimberly is expected to be immediately accretive to the REIT’s adjusted funds from operations,” the REIT stated.
"Wimberly is a perfect fit for our clustering strategy in the Dallas-Fort Worth market, building on our acquisition of Riverhill Apartments in December," said John Bailey, CEO of the REIT.
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BioSyent Inc. (RX-X) announced late Friday it will receive a Notice of Deficiency (NOD) from Health Canada with respect to its new drug submissions of two cardiovascular products for which it has exclusive distribution rights in Canada.
“We are disappointed to learn that we will receive a NOD from Health Canada for the regulatory submissions of these two cardiovascular products,” said René Goehrum, CEO of BioSyent, “as these products have been approved throughout Europe and in other countries around the world. We will work towards providing Health Canada the necessary additional information it has requested for these products.”
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Innergex Renewable Energy Inc. (INE-T) announced it’s selling its Magma Energy Sweden A.B. subsidiary, which owns an equity interest of approximately 53.9 per cent in HS Orka hf, to a Macquarie Infrastructure and Real Assets managed European infrastructure fund for US$304.8-million.
"This transaction is highly strategic and will create significant value for Innergex as it allows us to focus on our core markets, reimburse our one-year credit facility, deleverage our corporate credit facilities and reduce our exposure to foreign exchange," said Michel Letellier, CEO of Innergex.
The company said net proceeds from the sale will be used "to reimburse the $228-million one-year credit facility contracted in October 2018 at the time of the acquisition of the remaining interest in the Cartier wind farms and operating entities, to deleverage corporate facilities and for general corporate purposes."
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TransAlta Corp. (TA-T; TAC-N) announced an investment by Brookfield Renewable Partners and its institutional partners “that crystalizes the value of its Hydro Assets, enhances its financial position to execute its strategy, and accelerates the opportunity to return capital to shareholders.” TransAlta said the investment will ensure it transitions to 100 per cent clean energy by 2025.
Under the terms of the agreement, Brookfield will invest $750-million in TransAlta through the purchase of exchangeable securities, which will be convertible into an equity ownership interest in TransAlta's Alberta Hydro Assets in the future. Brookfield has also committed to purchase TransAlta common shares on the open market to increase its share ownership in TransAlta to 9 per cent. TransAlta will include two Brookfield nominees, Harry Goldgut and Richard Legault, on its slate of directors for election at the upcoming shareholder meeting.
“TransAlta and Brookfield intend to work together to complete TransAlta’s transition to clean energy, maximize the value of the Hydro Assets, and create long-term shareholder value,” the company stated.
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Enghouse Systems Ltd. (ENGH-T) announced it’s buying Espial Group Inc. (ESP-T) in a deal valued at $56.5-million. Each Espial shareholder will receive $1.57 for each Espial share, which is a 39-per-cent premium to their closing price on Friday.
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