Industrial Alliance Insurance and Financial Services Inc. has acquired PPI Management Inc., a Canadian insurance marketing and distribution firm, effective immediately.
PPI Management operates 15 marketing and resource offices across Canada, helping advisers place business through all major insurance companies across Canada. It has a national distribution network of more than 3,000 advisers.
In addition, Industrial Alliance announced that it entered into an agreement under which a syndicate of underwriters co-led by TD Securities Inc. and National Bank Financial Inc. will purchase, on a bought deal basis, 2.5 million common shares from iA Financial Group at a price of C$54.10 per share, representing aggregate gross proceeds of C$135 million. The company also granted the underwriters a 30-day overallotment option to purchase up to an additional 250,000 common shares at the same price for additional aggregate gross proceeds of up to C$149 million.
Industrial Alliance also entered into a separate agreement with a syndicate of underwriters co-led by TD Securities Inc. and National Bank Financial Inc. under which the underwriters agreed to buy, on a bought deal basis, 6 million non-cumulative 5-year rate reset class A preferred shares series I from iA Financial Group at a price of C$25.00 per share, representing aggregate gross proceeds of C$150 million. iA Financial Group also granted the underwriters a 30-day overallotment option to purchase up to an additional 2 million preferred shares at the same price for additional aggregate gross proceeds of up to C$50 million.
The preferred shares will not be redeemable by iA Financial Group prior to March 31, 2023. On March 31, 2023, and on March 31 every five years thereafter, iA Financial Group may redeem all or any part of the preferred shares at a cash redemption price per share of C$25.00 together with all declared and unpaid dividends. All or any part of the preferred shares may be redeemed at a cash redemption price per share of C$25.00 together with all declared and unpaid dividends in the case of redemptions on March 31, 2028, and on March 31 every five years thereafter or C$25.50 together with all declared and unpaid dividends in the case of redemptions on any other date after March 31, 2023.
The net proceeds of the common stock and preferred stock offerings will be used for general corporate purposes and to maintain and replenish iA Financial Group's capital base, including after giving effect to the payment of the purchase price for the PPI Management acquisition.
The common stock and preferred stock offering are each expected to separately close on or about March 7, subject to certain conditions, including Toronto Stock Exchange and other customary regulatory approvals.
IA Financial Group is a business name and trademark of Industrial Alliance Insurance and Financial Services.