Hub finalizes Kaye deal

Broker consolidator Hub International Ltd. (TSE: HGB) says the previously announced acquisition of U.S.-based brokerage Kaye Group Inc. has been finalized. Kaye shareholders will receive US$14 a share in cash under the terms of the deal.
As part of the transaction, Hub issued US$35 million in subordinate convertible debentures to its parent company, Fairfax Financial Holdings Ltd., as well as Cdn$42.5 million in subordinate convertible debentures to Zurich Insurance Co. The debentures are convertible to common shares of HUB at a value of Cdn$17 a share.