Fiera Capital Corp. has completed a private placement of 581,602 class A subordinate voting shares to Natcan Investment Management Inc.
The shares were issued as part of an asset purchase agreement between the companies and Natcan parent National Bank of Canada related to Fiera Capital's acquisition of Natcan's business. Under the agreement, Fiera Capital will satisfy part of the purchase price by making annual payments for seven years after the deal's closing, which took place April 2, 2012.
Fiera Capital has elected to issue to Natcan class A shares to satisfy the annual payment of C$8.5 million for the year starting July 1, 2016, and ending June 30. The issue price per share is equal to the volume weighted average trading price of the shares for the 20-trading-day period ended Oct. 17.
As a result of the issuance, National Bank of Canada beneficially owns about 21.2% of Fiera Capital's issued and outstanding class A shares and class B special voting shares.