Canaccord Genuity Management Group Offers $1.13 Billion to Take the Firm Private

FP | Denise Paglinawan  | Jan 9, 2023

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A group comprised of members of Canaccord Genuity Group Inc.‘s management team is proposing to take over the company with an all-cash bid worth about $1.127 billion.

  • Canaccord Genuity Group Inc.’s stock [initially became a public company listed on the TSX in June 2004 and on the Alternative Investment Market of the London Stock Exchange a year later] went on a huge run after the onset of the pandemic as dealmaking boomed and markets soared. But since the start of 2022, it had suffered a precipitous decline [down 42 per cent over the past year]. Earlier this week, a management group decided the plunge had gone too far, and launched a $1.127 billion bid — 30 per cent above the previous closing price — to take the company private.

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  • All cash bid: The management-led group said the offer values the company at $11.25 per common share. It said this represents a 30.7 per cent premium for shareholders to the closing price of $8.61 per common share on Jan. 6 and a 41.9 per cent premium to the 20-day volume-weighted average price of $7.93 per common share on the Toronto Stock Exchange for the period ending on Jan. 6.
    • The management group said there’s a “potential downward impact” to the common share price if the offer is not accepted. It said the group believes common shares would trade below the offer price if this happens.
  • A special committee its board of directors formed to evaluate the proposal will fully respond to the offer in due course. It said the offer will not formally commence until the takeover bid circular has been filed and mailed. The offer will remain open for acceptance for a minimum of 105 days.

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