09/25/2013 06:26 EDT | Updated 11/25/2013 05:12 EST

Gluskin Sheff founders selling stake worth $122M; will end dual voting shares

TORONTO - The two founders of Gluskin Sheff + Associates Inc. (TSX:GS) are selling off a stake in their wealth management company for $122 million.

Both Ira Gluskin and Gerald Sheff have reached an agreement that will reduce their controlling stake to below the 55 per cent they held less than a year ago, according to regulatory filings.

The sale, to a syndicate of underwriters led by RBC Capital Markets (TSX:RY) and TD Securities (TSX:TD), is for 6.4 million subordinate voting shares of the company for $19 each, with a closing date of Oct. 16.

As part of the agreement, any outstanding dual voting shares will be converted into subordinate voting shares, which would both Gluskin and Sheff with two per cent of the voting shares.

Over the past several years both men have slowly pulled back on their responsibilities at the company. In 2009, Sheff stepped down as chief executive officer while Gluskin also left his role as chief investment officer.