TORONTO — Canaccord Genuity Group Inc. has made a takeover offer for RF Capital Group worth about $367 million, a move that would combine two of the largest independent wealth management businesses in Canada.
The firm says RF Capital's board dismissed the proposal earlier this month without reason and that representatives of Richardson Financial Group Ltd., which holds a 44 cent stake in RF Capital, rejected an invitation to discuss the offer.
Richardson Financial confirmed Monday that its shares in RF Capital are not for sale and that it believes in the long-term vision for the company.
However, Canaccord Genuity CEO Dan Daviau says he believes the plan would provide superior value for RF Capital shareholders, and that Richardson Wealth investment advisers would benefit from the scale, stability and growth potential of his firm.
Under the proposal, Canaccord Genuity is offering $2.30 per share in cash or Canaccord Genuity shares for each RF Capital share. In trading on the Toronto Stock Exchange, RF Capital shares were up 20 cents at $1.96.
RF Capital is the parent company to investment manager Richardson Wealth and RF Securities Clearing, which provides broker services to Richardson Wealth and others.
This report by The Canadian Press was first published March 15, 2021.
Companies in this story: (TSX:CF, TSX:RCG)
The Canadian Press