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National Bank Financial Group has agreed to acquire a 12.5% equity interest in Wellington West for $35.8 million, or $54.40 per share.

In addition, Wellington West will be entitled to receive a capital contribution from National Bank up to an additional $35 million if it achieves certain earnings targets over the next three years.

As part of the overall transaction, National has a right to acquire up to an additional 5% of Wellington West’s equity in the event that existing shareholders wish to sell their shares from time to time.

“This is a turning point in the history of Wellington West,” says Charlie Spiring, founder and CEO, Wellington West Holdings. “Fifteen years ago we opened a boutique investment firm in Winnipeg and seven years ago we made the leap to grow nationally. Today we are a coast-to-coast full-service wealth management firm with a clear shot at becoming the top independent firm in the country.

Completion of the transaction is subject to a number of conditions, including certain regulatory approvals and the adoption of a new shareholders agreement by holders of at least two-thirds of Wellington West’s shares. Closing of the transaction is expected in mid-October 2008.

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Liberals Will Cut Planned Trust Tax

The Liberal Party of Canada says it will tax income trusts at a lower rate if it forms the next government.

The party is proposing a 10% tax that is refundable for Canadian residents, meaning only foreign unitholders will have to foot the bill.

The current federal government plans to tax income trusts at a rate of 31.5% beginning in 2011.

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The Liberals want to retain income trusts as a high-yield investment option so that Canadians have a diversity of investment vehicles.

Prime Minister Stephen Harper says the government has no plans to reverse its October 2006 decision.

Canadians will go to the polls on Oct. 14.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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