{"id":42073,"date":"2021-03-17T09:58:25","date_gmt":"2021-03-17T14:58:25","guid":{"rendered":"http:\/\/prefblog.com\/?p=42073"},"modified":"2021-03-17T09:58:25","modified_gmt":"2021-03-17T14:58:25","slug":"cf-bids-for-rcg","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=42073","title":{"rendered":"CF Bids For RCG"},"content":{"rendered":"

Canaccord Genuity Group Inc. has announced<\/a> (on March 15):<\/p>\n

that on March 9, 2021 it submitted a letter to the board of directors of RFCapital Group Inc. (TSX:RCG) (\u201cRF Capital\u201d) in which Canaccord Genuity proposed to purchase 100%
\nof the outstanding shares of RF Capital for $2.30 per share (the \u201cProposal\u201d) for cash or Canaccord Genuity common shares. The Proposal represented a 31% premium to the closing price of RF Capital common shares on March 12, 2021 and a 30% premium to the volume-weighted average price for the 20 trading days ended on that date. The proposed price of $2.30 per common share is supported by the formal valuation commissioned by the special committee of RF Capital\u2019s board of directors in connection with the recently completed transaction (the \u201cRGMP Transaction\u201d) between RF Capital and Richardson GMP Limited (\u201cRichardson Wealth\u201d). The rationale behind the Proposal is simple \u2013 on a combined basis, RF Capital and Canaccord Genuity would become the preeminent independent wealth business in Canada.<\/p>\n

Unfortunately, RF Capital\u2019s board of directors dismissed the Proposal on March 10, 2021 without reason. As a result, RF Capital shareholders, including its Investment Advisors (\u201cIA\u201ds) who, as a group, represent a significant shareholding, were not provided an opportunity to consider an offer at an attractive valuation. Representatives of Richardson Financial Group Limited (the \u201cRichardson family\u201d), which owns approximately 44% of the outstanding common shares of RF Capital, rejected an invitation to discuss the Proposal.<\/p><\/blockquote>\n

Andrew Willis comments in the Globe<\/a>:<\/p>\n

Investment dealer Canaccord Genuity Group Inc. CF-T (+1.04% increase) is taking a $367-million takeover offer for RF Capital Group Inc. RCG-T (+4.10% increase)
\nto the company\u2019s public shareholders and employees, after being rebuffed by its rival\u2019s board and largest shareholder, Winnipeg\u2019s Richardson family.<\/p>\n

In a bid to unite two of the country\u2019s largest independent wealth management platforms, Toronto-based Canaccord sent RF Capital\u2019s board a letter last Tuesday offering $2.30 a share for the company, a price 31 per cent above where its shares were trading. The following day, RF Capital\u2019s board turned down the bid, without offering reasons, according to a news release from Canaccord on Monday detailing the previously confidential negotiations.
…<\/b>
By making its offer public, Canaccord is trying to get these shareholders to push for a deal. Canaccord has $88-billion of client assets under management, an increase of $32-billion over the past five years.<\/p><\/blockquote>\n

Affected issues are CF.PR.A, CF.PR.C, RCG.PR.B and RCG.PR.C.<\/p>\n","protected":false},"excerpt":{"rendered":"

Canaccord Genuity Group Inc. has announced (on March 15): that on March 9, 2021 it submitted a letter to the board of directors of RFCapital Group Inc. (TSX:RCG) (\u201cRF Capital\u201d) in which Canaccord Genuity proposed …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-42073","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/42073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42073"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/42073\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}