Sprott to acquire 3 cos in a C$90 million stock deal
Wed Sep 22, 2010 9:18am EDT
BANGALORE (Reuters) - Canadian fund manager Sprott Inc (SII.TO:Quote) said it entered into a C$90 million ($87.89 million) stock deal to acquire three companies led by investor Rick Rule to increase its investments in the natural resource sector.
Sprott said it will issue 20 million shares as consideration for Global Resource Investments Ltd, Terra Resource Investment Management Inc and Resource Capital Investment Corp.
Rick Rule, an investor specializing in mining and energy, will join Sprott's executive team and will be nominated to its board.
Sprott will issue an additional 8 million shares in five years on completion of certain financial performance targets.
Sprott said the deal would immediately add to its earnings and increase its assets under management by $500 million and overall assets under administration by $850 million.
Shares of Sprott, which have risen 27 percent in the last 30 days, closed at C$4.50 Tuesday on the Toronto Stock Exchange.
