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Canaccord Genuity Group Inc
Symbol CF
Shares Issued 107,813,482
Close 2020-08-10 C$ 7.80
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FP/wire say Canaccord deal may hinge on wealth unit

2020-08-11 09:31 ET - In the News

The Financial Post reports in its Tuesday edition that the board of Canaccord Genuity Group may prefer a deal involving its U.K. wealth management unit to a sale of the entire company. A Bloomberg dispatch to the Post reports that sources say Canaccord is exploring strategic options including a sale of all or part of its business. The move comes after activist investor Eric Rosenfeld and former Canadian Imperial Bank of Commerce executive Gillian Denham joined its board of directors. TD analyst Graham Ryding says, "A potential sale of Canaccord outright is low, as there may be a limited pool of potential buyers interested in Canaccord's globally distributed and diverse assets." Mr. Ryding says the board might be "hesitant to sell outright the U.K. wealth business, its most valuable asset, in our view." He adds Canaccord could, however, try to boost the scale of its U.K. wealth unit by combining it with another similar-sized firm. Mr. Ryding says, "U.K. wealth provides material earnings stability, and management still sees good growth and margin upside." The division had $34-billion (U.S.) in client assets as of June 30. Canaccord shares have soared this year despite COVID-19, rising 63 per cent.

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