Duntroon Energy Ltd. says it has inked an acquisition agreement with Brompton Group Ltd. and Newport Partners Holdings LP to acquire Brompton Funds LP (BFLP).

BFLP owns Brompton’s investment funds management business, which manages assets currently totalling $2.5 billion. BFLP is owned 55% by Toronto-based Brompton Group and 45% by Newport. Newport is wholly owned by Newport Partners Income Fund of Toronto.

The directors of Toronto-based Duntroon have approved the acquisitions and have recommended that Duntroon shareholders vote to approve the transaction at the shareholder meeting on March 31.

Under the terms of the deal, Duntroon will pay $64.5 million (plus an amount equal to the advances made by BFLP to its partners in respect of the period from January 1 to the date of closing), plus $100,001 and will issue 1,428,333 Class A shares, a new class of shares to be formed for the transaction, at a value of $45 per Class A share. Also, another 500,000 voting common shares will be issued at $0.45 per common share.

According to the company, the same management team, directors and independent review committee will remain after the transaction.

The transaction is subject to a number of conditions and the closing is expected to take place as soon as all conditions are met following the shareholder meeting.