Canadian M&A Roundup October 6 – October 10

While the total value of deals last week was $2.25 billion, it was largely off the Bank of Nova Scotia’s strong balance sheet with their $2.07 billion acquisition of CI Financial Income Fund significantly boosting poor numbers. Only 22 transactions occurred last week, no surprise considering the amount of fear and panic in the market.

Selected Transactions:

Target: CI Financial Income Fund
Acquirer: Bank of Nova Scotia
Seller: Sun Life Financial
Value: $2.07 billion
Target Financial Advisor: Scotia Capital

In a move to increase their capital base, Sun Life Financial, one of Canada’s largest insurers, sold a 37% stake in CI Financial Income Fund to the Bank of Nova Scotia for $2.07 billion in cash. The move makes the Bank of Nova Scotia the third largest fund company in Canada and a real competitor to IGM Financial and RBC. This is the Bank of Nova Scotia’s second major acquisition in the last few months after acquiring E*TRADE Canada for $442 million in July.

Canadian M&A Roundup Sep 29 – Oct 3

With credit tight all around, it’s no surprise to see little M&A activity and unlike the U.S., Canada doesn’t have its own Warren Buffet to keep dealmaking alive. Deals in Canada totaled 24 transactions with a total worth of $314 million bringing year-to-date results to 1,150 deals with a value of $86.4 billion. Investment bankers have definitely seen better days.

Selected Transactions:

Target: DHX Media
Acquirer: Entertainment One Ltd.
Value $56.8 million
Target Financial Advisor: GMP Securities
Acquirer Financial Advisor: TD Securities

DHX Media, a Canadian children’s television program producer has agreed to a reverse takeover of Entertainment One Ltd, a global independent entertainment content ownership and distribution company. The $56.8 million cash and stock deal is at a 61% premium to DHX Media’s prior closing price.

Target: New Millennium Capital Corp
Acquirer: Tata Steel Ltd.
Value $22.6 million
Target Financial Advisor: Credit Suisse
Acquirer Financial Advisor: Undisclosed

New Millennium Capital Corp, a publicly owned Canadian mining company engaged in the exploration and development of iron ore properties, has become a wholly owned indirect subsidiary of Tata Steel Limited with Tata Steel acquiring 19.9% of the common shares in a $22.6 million private placement. Credit Suisse acted as the financial advisor for New Millennium Capital.