TORONTO — Canaccord Genuity Group Inc. says a regulatory issue with one of its foreign subsidiaries could hold up a proposed management buyout of the firm.
The financial services firm says the unspecified issue in its capital markets business means its unlikely that it will receive approval for the buyout by the June 13 exipry date, and might also not be secured by the Aug. 9 expiry date for the financing commitments related to the deal.
Canaccord says the issue is unrelated to the deal and that its subsidiary has made significant improvements to its compliance functions and significant investments in additional staff and technology.
The firm did not immediately reply to a request for more details on the regulatory matter, but says in a news release that it expects the issue to be resolved without a material impact on its finances.
A special committee at Canaccord is still reviewing the proposal by managers and employees at the firm that have offered $11.25 a share to take it private at a valuation of a little over $1.1 billion.
The employee group includes chief executive Daniel Daviau and chairman David Kassie as well as all the members of the company's global operating committee and additional senior and tenured employees from across its business.
This report by The Canadian Press was first published May 8, 2023.
Companies in this story: (TSX:CF)
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