Business
Olympia Trust Company Completes Sale of Transfer Agency and Corporate Trust Assets; Announces $10.00 per Share Special Dividend, 2014 Quarterly Dividend Policy of $0.65 per Share and Management Changes
CALGARY , Dec. 12, 2013 /CNW/ - Olympia Financial Group Inc. (TSX: OLY) (the "Corporatio...
About this update from Olympia Financial Group Inc.
[{"type":"text","content":"\n\n\nCALGARY, Dec. 12, 2013 /CNW/ - Olympia Financial Group Inc. (TSX: OLY)\n (the \"Corporation\") announces that it has completed the sale of its\n transfer agency and corporate trust assets (the \"CSS Sale Transaction\")\n to Computershare Trust Company of Canada (\"Computershare\") for cash\n consideration of $43.0 million (the \"Purchase Price\"), subject to any\n post-closing adjustments, as described below.  After paying certain\n executive management and board profit sharing entitlements and closing\n costs, the Corporation anticipates receiving after-tax net proceeds of\n approximately $29.6 million (assuming no post-closing adjustments are\n required).  Pursuant to the agreement, the Purchase Price may be\n reduced post-closing by an amount up to $7.5 million in the event that\n net revenue lost from terminated client agreements exceeds net revenue\n gained from new business agreements during the one year period\n following the closing date (the \"Net Revenue Adjustment\").  The\n agreement also provides that $2.5 million will be held in escrow for a\n period of one year as security for any Net Revenue Adjustment, working\n capital adjustment or indemnification obligation of the Corporation in\n favour of Computershare required under the agreement.\n\n\nFurther, the Corporation announces that its Board of Directors has\n declared a one-time special cash dividend on its common shares of\n $10.00 per common share.  The dividend will be payable on December 31,\n 2013 to shareholders of record as at December 27, 2013.  Olympia's\n dividend reinvestment plan is suspended for the purposes of this\n special dividend, whereby the dividend reinvestment plan is not\n eligible for use by shareholders with respect to this special\n dividend.  The Corporation designates the entire amount of this taxable\n dividend to be an \"eligible dividend\" for purposes of the Income Tax\n Act (Canada), as amended from time to time. Please contact your tax\n advisor if you have any questions with regards to the designation of\n the eligible dividend.\n\n\nGiven the completion of the CSS Sale Transaction and the special\n dividend being declared and paid to shareholders as contemplated above,\n the Board intends on changing the company's dividend policy whereby the\n regular quarterly dividend rate will be decrease...