Pacific Equity Partners and CIBC Mellon Trust Company have signed a definitive agreement for PEP to purchase CIBC Mellon Trust Company’s issuer services business (stock transfer and employee share purchase plan) through PEP’s portfolio company, Canadian Stock Transfer Company Inc.
With $5 billion of assets under management, Sydney-based PEP has made significant investments in businesses with specialist operations in share registry services, superannuation administration and investor relations. PEP has formed a network of strategic partnerships under Link Market Services (“The Link Group”), which has expanded beyond Australia into global markets such as India, South Africa, the United Kingdom, the United States and, now, Canada.
“The opportunities in North America are exciting,” said PEP founder and Link Chairman Paul McCullagh. “Expanding our capability and presence in Canada should signal to our clients and to the market that we are serious about enhancing our global share registry business and delivering world-class service to clients.”
“Our mission is to bring the best products and services to our clients through great people and state-of-the-art technology,” said John McMurtrie, Managing Director of Link. “This acquisition is a natural next step in our strategic journey to strengthen the connection between issuers and their shareholders across borders.”
“The sale of our issuer services business supports our strategic direction of focusing exclusively on our asset servicing business,” said Thomas S. Monahan, President and Chief Executive Officer of CIBC Mellon. “We have experienced unprecedented asset servicing business growth over the past several years and this sale will allow us to increase our focus and resources on continuing to develop innovative products and value-added services for our clients. I’m delighted that our issuer services colleagues will now become part of The Link Group – an organization that shares our commitment to innovation, leadership and client service.”
The transaction, subject to regulatory approvals, is expected to close in October 2010, with the company operating as Canadian Stock Transfer Company, or CST, part of The Link Group network. Terms of the transaction were not disclosed.
CST will join forces with American Stock Transfer (AST) to become the North American division of The Link Group.
Mark C. Healy, President and Chief Executive Officer of AST, will assume responsibility for implementing the network’s North American strategy as President and CEO of both CST and AST.
CIBC Mellon was advised by Blair Franklin Capital Partners Inc. and by Blake, Cassels & Graydon LLP. PEP was advised by Canaccord Genuity Corp. and by Baker & McKenzie LLP.
D.C.