Overview

• SaskCentral and Equitable Bank (a subsidiary of TSX-listed Equitable Group) jointly announced a strategic transaction whereby Equitable Bank would acquire 100% of Concentra Bank
  • The Purchase price is a formula equal to 84% of the at-Closing Book Value of Concentra, plus $30 million
• In addition to being the controlling shareholder of Concentra, SaskCentral is the liquidity manager and key consulting service supplier for Saskatchewan’s credit unions
  • Concentra Bank is a Schedule 1 Chartered Bank with $11.8 billion of assets
  • Concentra Bank is owned 84% by SaskCentral and 16% by certain minority shareholders 

MPA’s Role and Key Considerations

• The Board, under the direction of the Transaction Oversight Committee, engaged MPA as financial advisor and requested MPA to provide an opinion (the “Fairness Opinion”) as to the fairness, from a financial point of view, of the Consideration to be paid to SaskCentral under the proposed Transaction
• MPA performed a number of financial analyses with respect to the Company to better understand the en bloc sale value of the enterprise, including a discounted cash flow (DCF) analysis, comparable company trading analysis, and a precedent transactions analysis

Outcome

• MPA determined that the Consideration fell within the range of each of these financial analyses
• Equitable Bank announced the completion of Concentra Bank for a premium of $35.7 million to its $459.7 million book value of common equity