Desjardins invests in Qtrade Financial Group

Desjardins Financial Corporation Inc. will purchase between 25% and 40% of the outstanding shares of Qtrade Financial Group from current security holders (on a fully-diluted basis). The deal is expected to close Q2 2013.

Desjardins Group is the largest cooperative financial group in Canada with assets of nearly $200 billion, and Qtrade Financial Group oversees approximately $7.5 billion of client assets. Qtrade provides wealth management services to the retail public and customers of over 180 financial institutions, notably credit unions across Canada.

Read: Sales of Desjardins capital shares reach $1 billion

“This partnership will provide a number of other benefits over time for our members and clients,” says Monique F. Leroux, Chair of the Board, President and CEO of Desjardins Group. “For example, pooling our respective expertise and streamlining our processes, especially in the area of information technology, are key advantages in this ever-changing industry.”

The transaction is part of Desjardins’ strategic plan to grow its major business lines. Upon the arrangement becoming effective Qtrade, headquartered in Vancouver, will continue to operate independently with current leadership and under its own brand name.

Read: Canada losing steam: Desjardins

The required approvals have been received from the boards of both organizations for this transaction. Support has been received from a number of shareholders representing over three quarters of Qtrade shares outstanding.

A proxy circular will be mailed to all Qtrade shareholders in the coming weeks providing details about the arrangement, and remains subject to customary closing conditions including court, shareholder and regulatory approvals. Desjardins will have the right to acquire the majority of the remaining Qtrade shares over the next six years.

More to come…

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