The management team of Canaccord Genuity Inc.announced an all-cash takeover bid of $11.25 per share early Monday, valuing the financial services company at roughly $1.13-billion. New York-based HPS Investment Partners LLC, Canaccord’s largest individual shareholder, has agreed to provide up to $825-million in financing to support the deal.
“The public markets place a low value on the business, given its exposure to a cyclical capital markets environment,” the group behind the takeover bid said in a release. “That has been magnified by the tumultuous 2022 in the capital markets and which is expected to continue while the common shares remain publicly traded.”
Investors representing at least 75 per cent of Canaccord’s total common shares must agree to sell in order for the go-private transaction to be completed, the offeror group said. If that occurs, the plan is to delist Canaccord from the Toronto Stock Exchange “as soon as practicable,” the group said, which would bring its nearly two decades as a public company to an end.