Management-led group bids for Canaccord Genuity in take-private deal

The proposed deal values Canaccord Genuity at about C$1.127 billion.

  • The management-led group has offered to acquire all of the company’s issued and outstanding common shares for C$11.25 per share
  • It has received a financing commitment from HPS Investment Partners for a senior secured first-lien term loan facility of up to C$825 million
  • President and CEO Daniel Daviau is indirectly the sole shareholder of the offering group

A management-led group has commenced a take-private acquisition bid of Canaccord Genuity Group, a Toronto-based wealth management and capital markets business.

The group, which includes president and CEO Daniel Daviau, has offered to acquire all of the company’s issued and outstanding common shares for C$11.25 per share. The proposed deal values Canaccord Genuity at about C$1.127 billion.

The group has received a financing commitment from HPS Investment Partners for a senior secured first-lien term loan facility of up to C$825 million.

HPS, a New York-based investment firm, is an existing Canaccord Genuity shareholder.

“We are pleased to be presenting this compelling proposal to the shareholders, including our largest independent Shareholder, who is supportive of the proposed offer,” said Daviau, indirectly the sole shareholder of the offering group, in a statement. “The geographically diverse business has proven to provide excellent advantages for the company’s clients, but the common shares, which naturally reflect the inherent volatility of the global capital markets in which the company operates have proven to be not well-suited for trading in a public marketplace. After the completion of the proposed offer, as an employee-owned business, the company will be able to focus its efforts solely on advancing its proven strategies in ways that serve the best interests of its clients, while continuing to support a vibrant marketplace for issuers in need of capital, entrepreneurs bringing new companies and ideas to market and investors in our wealth management and capital markets businesses.”

Stikeman Elliott is acting as legal advisor to the management-led group in respect of the proposed offer and Canadian legal matters in respect of the debt financing. Shearman & Sterling is acting as legal advisor to the group in respect of the debt financing. McCarthy Tétrault and Kirkland & Ellis are acting as Canadian and US counsel, respectively, to HPS Investment Partners in connection with the debt financing.