Sprott Inc. (TSX: SII) ("Sprott") and Tocqueville Asset Management
(“Tocqueville”) today announced that Sprott Asset Management LP
(“SAM”) and Tocqueville have entered into a definitive agreement
regarding the acquisition by SAM of the Tocqueville gold
strategies.
“We are pleased to be acquiring Tocqueville’s
gold strategy asset management business,” said Whitney George,
President of Sprott. “John Hathaway and his team are among the
world’s most respected gold equities managers and we have enjoyed
an excellent working relationship during the planning and launch of
our joint venture over the past year. This transaction is a natural
extension of that partnership, through which John will become a
Sprott shareholder. We look forward to working closely together to
serve our clients.”
“We believe that this transaction is an
excellent fit for our mutual fund shareholders and our clients,”
said Robert W. Kleinschmidt, President, CEO and CIO of Tocqueville.
“It ensures us continued participation in the gold space, as well
as access to the best investment talent and resources in the
sector. We look forward to partnering with Sprott in this endeavor
and to developing closer ties between the two firms in the
future.”
“Sprott has a globally recognized brand with a
dedicated precious metals platform and a long history in the
sector,” said John Hathaway, Senior Portfolio Manager of
Tocqueville. “We share a similar world view and investment
philosophy and believe our clients will benefit from access to
Sprott’s team of technical experts and investment
professionals.”
“Based on current asset levels, this transaction
is expected to add US$1.9 billion (C$2.5 billion) in assets under
management (AUM) to our managed equities platform,” said Peter
Grosskopf, CEO of Sprott. “The addition of these strategies will
complement our other resource investment and financing businesses,
expand our global footprint and allow us to service clients in all
major gold markets.”
Additional Details Regarding the
Proposed Transaction
The proposed transaction remains subject to
security holder approval for certain acquired strategies,
regulatory and stock exchange approvals, including listing approval
of the Toronto Stock Exchange for the issuance of Sprott common
shares to Tocqueville, and other customary conditions to closing,
following which it would be expected to close in January 2020.
In consideration for the acquisition of the
Tocqueville gold strategies, Sprott will pay Tocqueville total
consideration of up to US$50 million comprised of a payment at
closing of US$10 million in cash and Sprott common shares valued at
US$5 million. Tocqueville will also be eligible to receive
contingent consideration valued at up to an additional US$30
million in cash and Sprott common shares valued at US$5 million,
subject to the achievement of certain financial performance
conditions over the two years following the closing of the proposed
transaction. The terms and conditions of the definitive agreement
are customary for transactions of this nature and Sprott will use
cash on hand to finance the cash portion of the purchase
price. Approval of Sprott shareholders will not be
required.
About Sprott
Sprott is an alternative asset manager and a
global leader in precious metal and real asset investments. Through
its subsidiaries in Canada, the US and Asia, Sprott is dedicated to
providing investors with best-in-class investment strategies that
include Exchange Listed Products, Lending, Managed Equities and
Brokerage. Sprott is based in Toronto with offices in New York,
Carlsbad and Vancouver and its common shares are listed on the
Toronto Stock Exchange under the symbol (TSX:SII). For more
information, please visit www.sprott.com.
About Tocqueville
The Tocqueville Trust was organized as an
open-end management company in 1986 to hold the Tocqueville Fund,
which launched in 1987. Over the next several decades,
complementary funds were added to create the Tocqueville Family of
Funds (“the Funds”). Tocqueville Asset Management L.P. (“TAM”)
provides investment management and advisory services to all of the
Funds. TAM has been managing institutional and private client
accounts since its founding in 1985 with a focus on growing and
preserving clients’ long-term capital. The experienced investment
professionals of TAM manage accounts, including the Funds,
utilizing independent thinking and rigorous research. For more
information, please visit www.tocquevillefunds.com.
Forward Looking Statements
This press release contains statements that
constitute "forward-looking information" (collectively,
“forward-looking statements”) within the meaning of applicable
securities laws. Often, but not always, forward-looking statements
can be identified by the use of words such as "plans", "expects",
"is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes" or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. In particular, but
without limiting the forgoing, this press release contains
forward-looking statements pertaining to the acquisition of the
Tocqueville gold strategies asset management business, including
that the transaction will be completed and the timing thereof, the
AUM to be added as a result of the transaction, certain portfolio
managers joining SAM upon the completion of the transaction and the
impact of the transaction on Sprott’s business and strategies.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Sprott to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such risks and
uncertainties include, without limitation, risk and uncertainties
that are inherent in the nature of the transaction, including:
failure to realize anticipated synergies; risks regarding
integration; incorrect assessments of the values of the acquired
assets; and failure to obtain any required security holder,
regulatory, stock exchange and other approvals (or to do so in a
timely manner). The anticipated timeline for completion of the
transaction may change for a number of reasons, including the
inability to secure necessary security holder, regulatory, stock
exchange and other approvals in the time assumed or the need for
additional time to satisfy the conditions to the completion of the
transaction. As a result of the foregoing, readers should not place
undue reliance on the forward-looking statements contained in this
press release concerning the completion of the transaction or the
timing thereof.
Forward-looking statements contained herein are
made as of the date of this press release and Sprott disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or results or otherwise.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. The
Company undertakes no obligation to update forward-looking
statements if circumstances, management's estimates or opinions
should change, except as required by securities legislation.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements.
Investor contact
information:
Glen WilliamsManaging Director Investor
Relations & Corporate Communications(416)
943-4394gwilliams@sprott.com
Media contact information:
Dan Gagnier / Jeff Mathews Gagnier
Communications (646) 569-5897sprott@gagnierfc.com
_______________________1 As of August 6, 2019
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