(Toronto) Canaccord Genuity Group said Monday that a regulatory issue with one of its foreign subsidiaries could delay a proposed management buyout of the company.
The financial services firm said the unspecified issue in its capital markets business made it unlikely to receive buyout approval by the expiry date of 13 June. Similarly, the transaction may not be secured by the August 9 expiration date for financing commitments related to the deal.
According to Canaccord, the problem is not related to the agreement and its subsidiary has made significant improvements to its compliance functions, in addition to significant additional investments in personnel and technology.
The company did not immediately respond to a request for more details on the regulatory issue, but said in a press release that it expects the issue to be resolved without any delay. significant impact on its finances.
A Canaccord special committee is still reviewing the proposal from the company’s executives and employees, who offered $11.25 a share to take it private at a valuation of just over $1.1 billion.
The employee group includes CEO Daniel Daviau and President David Kassie, as well as all members of the company’s Global Operating Committee and other key and permanent employees across his activities.
Company in this story: (TSX: CF)
