Source: The Canadian Press

Bank of Nova Scotia (TSX:BNS) has completed its acquisition of DundeeWealth Inc. (TSX:DC.A), saying Monday it now holds 97% of the wealth management firm.

Scotiabank initially bought an 18% minority stake in DundeeWealth in 2007 for $348 million, along with Dundee Bank for $260 million.

In November, it announced it would spend an additional $2.3 billion to acquire the remaining shares in DundeeWealth, which runs the Dynamic family of mutual funds in Canada. The offer expired at 12:01 a.m. ET Tuesday, with the bank saying it now holds 120 million common shares, giving it 97.06% of all those issued and outstanding.

It intends to acquire the remainder under compulsory acquisition procedures of the Business Corporations Act (Ontario), after which it will apply to de-list DundeeWealth from the Toronto Stock Exchange.

The Dundee companies had been controlled by the Goodman family through multiple vote shares. Both controlling shareholder Ned Goodman and president and CEO David Goodman had agreed to tender their shares to the offer.

DundeeWealth shareholders also got a special $2 per share cash payment at the end of January and an interest in Dundee Capital Markets, which was being spun out.

“The completion of this transaction brings the strengths of DundeeWealth and Scotiabank together,” said Chris Hodgson, group head, Scotiabank Global Wealth Management.

“We are committed to building on our individual strengths in serving clients, providing value to our shareholders and offering employees a great place to work. In the days ahead, we will be working closely with David Goodman and the DundeeWealth team to provide a seamless transition for our stakeholders.”

David Goodman called the takeover “an exciting stepping stone for DundeeWealth in our pursuit of international exposure, growth and recognition.”

“By remaining focused on the same ambitions of
entrepreneurialism and independent thinking that have guided our past, we move forward confidently into the future with the support of a new partner.”

Scotiabank has more than 70,000 employees serving some 18.6 million customers in more than 50 countries.

DundeeWealth, with $83.3 billion in fee-earning assets under management, offers diversified wealth and investment management, including alternative and tax-advantaged products and advisory services to financial advisers, institutions, corporations and foundations.