Agreement positions the Company and its shareholders to capture a greater share of activity in the region and further strengthens alignment of partners and employees
TORONTO, June 6, 2018 /CNW/ - Canaccord Genuity Group Inc. ("Canaccord Genuity", the "Company") is pleased to announce that it has entered a non-binding letter of intent to acquire an additional 30% of the shares in its Australian capital markets and wealth management business, Canaccord Genuity (Australia) Limited. This transaction has been sought by both parties and will increase the Company's ownership in Canaccord Genuity (Australia) to 80% from 50%.
"This investment provides a stronger foothold to explore opportunities to expand our wealth management businesses and increase contributions from our capital markets business in the region," said Dan Daviau, President and CEO of Canaccord Genuity Group Inc. "Our Australian team is well integrated into our global platform and has delivered very promising growth in recent years. We look forward to continuing to support their development initiatives in the region."
"Since 2011 we have enjoyed a supportive and collaborative relationship with our partners across Canaccord Genuity and we are confident this additional investment will continue to add strategic value for our business and our clients," added Marcus Freeman, Chief Executive Officer of Canaccord Genuity (Australia) Limited. "We will leverage this increased partnership and the extensive support that it brings to strengthen our position as a leading mid-market investment bank in Australia and provide a differentiated service offering for our capital markets and wealth management clients in Australia and the broader Asia-Pacific region."
Canaccord Genuity in Australia and Asia-Pacific
The consideration for the purchase will be A$36 million comprised of A$15.0 million cash, a A$6.0 million note payable and the issuance of approximately 2.3 million Canaccord Genuity Group shares with a value of A$15 million. The shares will be subject to a three-year escrow arrangement with annual releases. Closing is subject to finalizing definitive documentation, customary closing conditions and regulatory approval including TSX approval.
ABOUT CANACCORD GENUITY GROUP INC.
Through its principal subsidiaries, Canaccord Genuity Group Inc. (the Company) is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and capital markets. Since its establishment in 1950, the Company has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services. The Company has wealth management offices located in Canada, the UK, Guernsey, Jersey, and the Isle of Man and Australia. Canaccord Genuity, the international capital markets division, operates in North America, UK & Europe, Asia, Australia and the Middle East. To us there are no foreign markets.TM
Canaccord Genuity Group Inc. is publicly traded under the symbol CF on the TSX.
SOURCE Canaccord Genuity Group Inc.
Christina Marinoff, Vice President, Investor Relations & Communications, Phone: 416-687-5507, email: [email protected], www.canaccordgenuity.com, www.canaccordgenuitygroup.com
Through its principal subsidiaries, Canaccord Genuity Group Inc. (the Company) is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and capital markets. Since its...
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