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MONEY MANAGEMENT

Sprott agrees to management buyout of mutual fund business

Canadian money manager Sprott Inc. agreed to sell Sprott Asset Management, its C$3 billion ($2.25 billion) mutual fund business to a management group led by John Wilson, SAM CEO, and James Fox, SAM president.

Sprott sold the unit for C$46 million, said Glen Williams, Sprott spokesman.

Sprott Inc. CEO Peter Grosskopf said in a news release the parent company wants to focus on managing its C$7.5 billion in precious metals, natural resources and real assets.

Mr. Williams said Sprott Asset Management will change its name after the deal closes, expected to be in the third quarter. The new name has not been announced.

The announcement late Monday of the management buyout came three days after Eric Sprott, chairman of Sprott, announced he would be stepping down May 10 to spend more time with his family. Jack C. Lee, lead director of Sprott’s board, is expected to replace Mr. Sprott pending Mr. Lee’s re-election as a director on that date.