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 exempt market.
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 symbol "OLY".
SOURCE Olympia Financial Group Inc.