Canaccord in Talks to Sell UK Wealth Unit for ~$1.3B to Centerbridge-Mubadala Group
CCORF sits 82% above its 52-week low of $5.38.
Summary
Canaccord Genuity is negotiating the sale of its UK wealth management business to a Centerbridge Partners-led group that includes Abu Dhabi's Mubadala, per Bloomberg. The talks follow the lapse of exclusive negotiations with Warburg Pincus and Clayton Dubilier & Rice, so a new buyer group has stepped in rather than the process dying. A deal could value the unit at roughly £1B ($1.3B) and be announced within weeks, though the people cautioned it could still fall apart. That price is large relative to Canaccord's roughly $1B market cap, so a completed sale would be a major re-rating event for the stock, which rose 2.7% in Toronto on the report. CF is unrelated to this story and is not affected.
At the time of this announcement, CCORF was trading at $9.79 on OTC in the Finance sector, with a market capitalization of approximately $1B. The 52-week trading range was $5.38 to $11.00. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.