CWB announces the strategic sale of Valiant Trust Company assets

Canadian Western Bank (TSX: CWB) today announced it has entered into a definitive agreement (the “Agreement”) with Computershare Limited (Computershare)(ASX:CPU) to sell, subject to terms and conditions of the Agreement, certain assets of CWB’s subsidiary, Valiant Trust Company (Valiant), for maximum cash proceeds of $33 million. Assets to be purchased by Computershare relate to Valiant’s current business in stock transfer, corporate trust and employee plan services. Revenue contributions from this business represented approximately one percent of CWB’s total revenues for the year ended October 31, 2014. The sale is subject to customary closing conditions, including regulatory approval. The closing date is expected in early May 2015.

“This deal resulted from a purposeful strategic assessment that started over a year ago, and is supported by similar rationale to that of our recently announced agreement to sell Canadian Direct Insurance,” said Chris Fowler, CWB’s president and chief executive officer. “While the product lines offered by Valiant have provided solid contributions to our trust services offerings, our ability to profitably grow the stock transfer business was challenged in the face of ongoing industry consolidation and technology investment required to meet evolving client needs for these types of services. We’re confident that the deployment of capital from this sale into our faster growing and more strategically aligned core businesses will generate superior returns for CWB shareholders moving forward.”

“The transaction was facilitated through a competitive process, and Computershare’s reputation and position as a leader in their field gave us confidence that we could facilitate a smooth transition for both the employees and clients of Valiant,” continued Mr. Fowler. “We expect Valiant staff will continue to serve the needs of clients and their stakeholders in the same responsive way they always have, but with a more comprehensive suite of services and capabilities that will be offered under Computershare’s ownership.”

Stuart Swartz, CEO of Computershare Canada, added: “We’re very pleased to be extending our core businesses across Canada and look forward to welcoming Valiant’s clients and employees to Computershare. Our ability to add value to this business given the alignment with our core competencies provides tremendous opportunities for all Valiant clients and their stakeholders.”

Blair Franklin Capital Partners Inc. is acting as exclusive financial advisor to CWB.

CWB looks forward to dissemination of its first quarter financial results news release after the market closes on March 4, 2015. CWB’s executives will comment on financial performance and strategy, including this transaction, and respond to questions from analysts and institutional investors during the first quarter results conference call scheduled for Thursday, March 5, 2015 at 2:00 p.m. ET (12:00 p.m. MT). The conference call may be accessed on a listen-only basis by dialing 647-788-4922 or toll-free 1-877-223-4471. The call will also be webcast live on CWB’s website at www.cwb.com


For Further Information Contact:

Kirby Hill, CFA
Vice President, Strategy & Communications
Canadian Western Bank
Phone: (780) 441-3770
Email: [email protected]

Matt Evans, CFA
AVP, Investor Relations
Canadian Western Bank
Phone: (780) 969-8337
Email: [email protected]