Newly created entity iA Financial Corp. Inc. will become a holding company and the parent corporation of Industrial Alliance Insurance and Financial Services Inc. under an arrangement agreement that the companies entered into.
The move follows the announcement that iA Financial Group will create a holding company. IA Financial Group is a business name and trademark of Industrial Alliance.
Industrial Alliance's board has unanimously recommended that common shareholders vote in favor of the plan.
Immediately after the arrangement transaction, Industrial Alliance will continue to hold its existing assets and liability, and iA Financial Corp. will own all of Industrial Alliance's outstanding common shares. Additionally, Industrial Alliance common shareholders will become common shareholders of the new publicly traded iA Financial Corp.
After securing the approvals of shareholders and certain regulators, Industrial Alliance's common shares will be exchanged for iA Financial Corp. common shares on a 1-to-1 basis, and shareholders will not be required to take any action for the exchange of shares.
Accordingly, holders of Industrial Alliance's then publicly issued and outstanding preferred shares will remain holders of such shares, and holders of the company's then publicly issued and outstanding debentures will remain holders of such debentures.
Norton Rose Fulbright is acting as external legal adviser to Industrial Alliance with respect to the arrangement.