Business
Westaim to Invest AUS$154 Million to Finance AUS$3.9 Billion Insignia Acquisition
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About this update from Westaim Corporation
[{"type":"text","content":"Westaim to Invest AUS$154 Million to Finance AUS$3.9 Billion Insignia Acquisition\n\n\n .bwalignc { text-align: center; list-style-position: inside }\n.bwuline { text-decoration: underline }\n \n\n\n\n\n NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.\n \n\n\n\n\n The Westaim Corporation (“\n \n Westaim\n \n ” or the “\n \n Company\n \n ”) (TSXV: WED) today announced that it has agreed to provide approximately AUS$154 million (US$100 million) (the “\n \n Capital Commitment\n \n ”), subject to reduction, to finance the proposed acquisition by CC Capital and One Investment Management (together, Daintree Bidco Pty Ltd (“\n \n Bidco\n \n ”)) of Insignia Financial Ltd (“\n \n Insignia\n \n ”) (ASX: IFL), Australia’s leading diversified wealth management group with over AUS$330 billion in funds under management and advice.\n \n\n Cameron MacDonald, President and Chief Executive Officer of Westaim, stated: “Over the past year, we have embarked on a thoughtful transformation of Westaim designed to accelerate our growth, including investing in established, profitable businesses that align closely with our long-term financial objectives. This is a compelling opportunity to partner with CC Capital as we continue to execute on this mission. We are thrilled to support Insignia and are confident this investment will enable us to further drive strong, sustainable returns for our shareholders.”\n \n\n\n\n Transaction Details\n \n\n\n\n The Company has entered into a subscription agreement with Daintree Group Partners, LP (the “\n \n Partnership\n \n ”) and Daintree Group Partners GP, LLC, as the sole general partner of the Partnership (the “\n \n General Partner\n \n ”), pursuant to which Westaim will acquire limited partnership interests of the Partnership (the “\n \n Securities\n \n ”) in exchange for the Capital Commitment, subject to reduction. The General Partner is controlled by CC Capital, a control person and insider of Westaim and thus the General Partner is a “related party”, or non-arm’s length party, to the Company.\n \n\n In connection with the acqu...