M&A

29 October, 2009

UPDATE 2-Seamark, Growthworks form new Canadian company

* Seamark, GrowthWorks combine to boost AUM

* Majority of shareholders support the deal (Adds details)

TORONTO, Oct 29 (Reuters) - Money manager Seamark Asset Management Ltd (SM.TO) said on Thursday it is combining with GrowthWorks Ltd to bolster assets under management, with the combined company to be called Matrix Asset Management Inc.

Halifax, Nova Scotia-based Seamark has been hit by falling assets under management after the loss of several clients and the souring of financial markets, and analysts had said the firm needed to make major changes to survive.

GrowthWorks, a private asset management firm founded in 1998 by David Levi, brings about C$1 billion ($930 million) in assets under management to the deal, boosting AUM of the combined Matrix firm to C$3 billion, the parties said in a statement.

Under the agreement, Seamark and Growthworks will be subsidiaries of Matrix.

Manulife Financial Corp (MFC.TO) owns about 31 percent of Seamark.

Stephen Rankin, chairman of Seamark's board of directors, said the agreement represents great value for shareholders.

"We will create a new company with multiple sources of revenue across several asset and client groups," he said. "Profitability will be improved, and we expect to deliver significant long-term growth from a broader set of opportunities with less volatility than in the past."

The new company will combine Seamark's investment management services to institutions and high net worth individuals with Growthworks record in venture capital and managing retail mutual funds.

A majority of shareholders of both companies supported the deal, the companies said. Matrix will be governed by a new board of directors with representatives from both the boards of Seamark and GrowthWorks.

Seamark's lightly traded stock was down 1 Canadian cent at C$1.34 on the Toronto Stock Exchange at midday on Thursday.

($1=$1.07 Canadian) (Reporting by Andrea Hopkins; editing by Peter Galloway)

Source: http://www.reuters.com