Province of Ontario and Desjardins Credit Union Enter into Agreement

Pursuant to the terms of the Province of Ontario Savings Office Privatization Act, 2002, the province, as vendor, Desjardins Credit Union Inc., as purchaser, and Caisse centrale Desjardins, as guarantor, entered into an agreement of purchase and sale dated January 27, 2003 after participating in a competitive bid pursuant to a Request for Proposals issued by the province. Under the terms of the agreement, Desjardins Credit Union is to acquire substantially all the business and deposit liabilities of the Province of Ontario Savings Office. The Province of Ontario Savings Office deposit base acquired by the Desjardins Group is approximately $2.3 billion with 28 branches and agencies throughout Ontario. A new credit union, Desjardins Credit Union Inc., was formed in Ontario by Desjardins for purposes of the acquisition and carrying on the business. Financing was also arranged by the Desjardins Group for Desjardins Credit Union in the form of class A preferred shares and subordinated debt. The transaction was announced on January 29 and closed on March 31.

The Desjardins Group was represented by in-house counsel Vincent Brossard, and by Fasken Martineau DuMoulin LLP with a team that included Yvon Martineau and Robert McDowell (corporate and regulatory), Stephen Kerr (corporate), Koker Christensen (regulatory), Kathleen Hanly (tax), Paul King (real estate), Ralph Nero (employment and labour), Peggy McCallum (pensions and benefits), and René Cadieux (competition) in Montreal and Angela Di Padova (competition), May Cheng (intellectual property), David Robertson (commodity tax), John Beardwood (technology), Jean-Pierre Laporte (pensions and benefits) and Jennifer Komlos (employment and labour).

The province was represented by in-house counsel Craig Slater, Corey Simpson and Malley Hanslep, by Corey Simpson, acting for the province’s agent, the Ontario Financing Authority, and by Goodmans LLP with a team that included Carla Salzman (corporate and banking), Candy Schaffel (banking and regulatory), Donald Pierce, Q.C. (corporate and procurement rules), Dan Gormley (competition), Susan Zimmerman, and Scott Bell (legislative drafting and research) and Jim McLellan, Corie Garbati and Lauren Butti (corporate and real estate).