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).

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

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