- Laurentian Bank (TSX:LB) has agreed to sell the assets under administration of its retail full-service investment broker division
- The bank made the sale to iA Private Wealth Inc., a wholly owned subsidiary of Industrial Alliance Insurance and iA Financial Group (TSX:IAG)
- This transaction includes the transfer of roughly C$2 billion in assets under administration from Laurentian Bank Securities to iA Private Wealth
- Laurentian Bank opened trading at C$27.79 per share and iA Financial Corp. opened trading at C$85.09 per share
Laurentian Bank (TSX:LB) has agreed to sell the assets under administration of its retail full-service investment broker division.
The bank made the sale to iA Private Wealth Inc., a wholly owned subsidiary of Industrial Alliance Insurance and iA Financial Group (TSX:IAG), one of the largest insurance and wealth management groups in Canada.
This transaction includes the transfer of roughly C$2 billion in assets under administration from Laurentian Bank Securities to iA Private Wealth. Net proceeds from the transaction, the amount of which has not been fully disclosed, are not expected to be material to the bank.
“iA Private Wealth is a leading independent wealth manager in Canada with a deep and committed focus on supporting advisors in delivering the highest standards of professional financial advice,” Stephan Bourbonnais, executive vice president, wealth management at iA Financial Group and president and CEO of iAPW said in a news release. “This acquisition will support iA Private Wealth’s strong growth and expand its presence. We look forward to welcoming these new advisors and helping them continue to secure their clients’ financial future with confidence.”
The transaction is anticipated to close this summer, subject to regulatory approvals.
This comes as the bank seeks to simplify its business and concentrate on areas where the company believes it has a better chance of success.
Founded in Montréal in 1846, Laurentian Bank is a provider of financial services to its personal, commercial and institutional customers. The bank operates in Canada and the United States. Its segments include personal banking, commercial banking and capital markets.
Laurentian Bank (TSX:LB) opened trading at C$27.79 per share and though its stock is up 1.30 per cent over the past month, it is down 10.28 per cent from this time last year.
IA Financial Corp. (TSX:IAG) opened trading at C$85.09 per share and though its stock is down 0.99 per cent over the past month, it is up 0.32 per cent from this time last year.
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