Shares of the investment banking and financial services firm Canaccord Genuity (TSX:CF, LSE:CF) Group rose Monday in response to reports that a group of the company’s management team has proposed a takeover bid of C$11.25 per share.
The all-cash offer would total roughly $1.127 billion and would be a premium on the company’s $8.61 Friday closing price and $7.93 20-day volume-weighted average price on the Toronto Stock Exchange.
On Monday, though, shares jumped 30% to $11.19.
READ: Gold price hits eight-month high as the slide in the US dollar continues
The group, which includes the company’s CEO and chairman, among others, collectively owns 21.3% of Canaccord shares, according to reports. The members have also secured a financing commitment from HPS Investment Partners for up to $825 million.
“The common shares, which naturally reflect the inherent volatility of the global capital markets in which the company operates have proven to be not well-suited for trading in a public marketplace,” CEO Daniel Daviau said in a statement Monday.
The move comes as Canaccord shares have fallen significantly from $15.33 on January 10, 2022.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel