Sprott is to sell its Canadian diversified assets to a management group led by John Wilson, CEO of Sprott Asset Management (SAM), and James Fox, president of SAM, for approximately USD46 million.
Sprott is realigning resources to focus on the company’s core competencies in precious metals, natural resources and real assets in order to capitalise on global market opportunities in those areas.
“We have entered into this transaction to refocus on our core competencies as a globally-recognised manager of precious metals and resource industry investments,” says Peter Grosskopf, CEO of Sprott. “After careful consideration of several options, we determined that the sale of our Canadian diversified business was in the best interests of our clients, shareholders and employees.
“Going forward, we are committed to growing our key franchises, including our exchange-traded products, private resource and public equities businesses, while also seeding and launching complementary new products in capacity-constrained areas of the asset management industry.
“John Wilson and James Fox have built SAM’s diversified business into one of Canada’s leading independent asset managers and we are confident they will continue to provide Canadian investors with innovative alternative asset management solutions.”
Wilson says: “This transaction provides us with the opportunity to take the next step in the evolution of our diversified alternative asset management business. We are committed to continuing to provide excellent client service and investment performance, while also expanding our product shelf without compromising our commitment to innovative alternative strategies.”
Fox says: “We look forward to working closely with the Sprott team through the transition process and the ongoing sub-advisory relationships for our precious metals investment strategies.”