CALGARY, Dec. 12, 2013 /CNW/ - Olympia Financial Group Inc. (TSX: OLY)
(the "Corporation") announces that it has completed the sale of its
transfer agency and corporate trust assets (the "CSS Sale Transaction")
to Computershare Trust Company of Canada ("Computershare") for cash
consideration of $43.0 million (the "Purchase Price"), subject to any
post-closing adjustments, as described below. After paying certain
executive management and board profit sharing entitlements and closing
costs, the Corporation anticipates receiving after-tax net proceeds of
approximately $29.6 million (assuming no post-closing adjustments are
required). Pursuant to the agreement, the Purchase Price may be
reduced post-closing by an amount up to $7.5 million in the event that
net revenue lost from terminated client agreements exceeds net revenue
gained from new business agreements during the one year period
following the closing date (the "Net Revenue Adjustment"). The
agreement also provides that $2.5 million will be held in escrow for a
period of one year as security for any Net Revenue Adjustment, working
capital adjustment or indemnification obligation of the Corporation in
favour of Computershare required under the agreement.
Further, the Corporation announces that its Board of Directors has
declared a one-time special cash dividend on its common shares of
$10.00 per common share. The dividend will be payable on December 31,
2013 to shareholders of record as at December 27, 2013. Olympia's
dividend reinvestment plan is suspended for the purposes of this
special dividend, whereby the dividend reinvestment plan is not
eligible for use by shareholders with respect to this special
dividend. The Corporation designates the entire amount of this taxable
dividend to be an "eligible dividend" for purposes of the Income Tax
Act (Canada), as amended from time to time. Please contact your tax
advisor if you have any questions with regards to the designation of
the eligible dividend.
Given the completion of the CSS Sale Transaction and the special
dividend being declared and paid to shareholders as contemplated above,
the Board intends on changing the company's dividend policy whereby the
regular quarterly dividend rate will be decreased to $0.65 per share on
its common shares from the current rate of $0.70 per share, a decrease
of 7.1%. Pursuant to the current dividend policy, Olympia pays regular
quarterly dividends on its common shares on or about January 31, April
30, July 31 and October 31. As at the date hereof, Olympia has an
aggregate of 2,486,552 common shares issued and outstanding.
Mr. Randy Gregory will serve as a consultant to Computershare going
forward and has resigned, effective today, as the Corporation's
Executive Vice-President; Vice President Corporate and Shareholder
Services; and Secretary. Randy joined the Corporation in 2001 and was
instrumental in its growth and success to date. Although Randy is no
longer an officer of the Corporation, we are pleased to report that he
will continue as a director.
Mr. Craig Skauge, the Business Development Manager for Olympia Trust
Company's Registered Plans & TFSA Division for the past 10 years, has
been appointed the Executive Vice President of the Corporation. Mr.
Skauge is also the President, Chairman, and Founder of the National
Exempt Market Association, a not for profit society formed as an
advocacy, networking, and educational resource for participants in the
Mr. Bilal Kabalan, the Chief Information Officer for the Corporation,
has been appointed Vice-President Information Technology.
Mr. James Bell, General Counsel for the Corporation, has been appointed
Corporate Secretary of the Corporation.
About Olympia Financial Group Inc.
Olympia Financial Group Inc. ("OFGI") conducts most of its operations
through its wholly owned subsidiary Olympia Trust Company, a
non-deposit taking trust company. Olympia Trust Company is licensed to
conduct trust activities in Alberta, British Columbia, Saskatchewan,
Manitoba, Quebec, Newfoundland and Labrador, Prince Edward Island, New
Brunswick and Nova Scotia. Olympia Trust Company administers
self-directed registered accounts and offers foreign currency exchange
services. OFGI also offers private health services plans through its
wholly-owned subsidiary Olympia Benefits Inc.
OFGI's common shares are listed on the Toronto Stock Exchange under the
SOURCE: Olympia Financial Group Inc.
For further information:
Olympia Financial Group Inc.
Rick Skauge, President and Chief Executive Officer
Gerhard Barnard, Vice-President, Finance and Chief Financial Officer