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Central Fund of Canada To Be Bought By Sprott Asset Management


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Central Fund of Canada ( CEF ), a gold investment shop, Monday said it will be purchased by the Toronto- listed Sprott Asset Management for C$120 million ($96.2 million) in cash and stock.

Central Fund traded up 2.8% pre-bell.

Central Fund said that upon completion of the transaction, all class A shares will be exchanged for units in a new Sprott Physical Gold and Silver Trust.

Central Fund said more than $300 million in value is expected to be realized for the class A shareholders, relative to 9% pre-announcement value.

Sprott, a precious metals investment shop, will add about C$4.3 billion in assets under management as a result of the transaction.

Sprott said the New Sprott Trust will be substantially similar to the existing managed physical bullion trusts, such as Sprott Physical Gold Trust (ARCA).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , ETFs
Referenced Symbols: CEF


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