Canaccord Financial Acquires Collins Stewart Hawkpoint
|Areas||Banking and Finance Law, Tax|
Goodmans represented Canaccord Financial Inc. (Canaccord) in its acquisition of 100% of the equity of Collins Stewart Hawkpoint plc, subsequently renamed Collins Stewart Hawkpoint Limited (Collins Stewart), a UK-based financial advisory and wealth management firm. Prior to completion of the acquisition, Collins Stewart ordinary shares were publicly traded on the main market of the London Stock Exchange. The acquisition was implemented by way of a court-sanctioned scheme of arrangement under the Companies Act (United Kingdom). Based on the closing price of $8.50 on the Toronto Stock Exchange per Canaccord common share on December 14, 2011 (the date immediately prior to the announcement of the acquisition) the acquisition valued the issued and to be issued share capital of Collins Stewart at approximately £253.3 million ($407.1 million) (based on an exchange rate between Canadian dollars and British pounds sterling of 1.60720 at 5:00 p.m. (GMT) on December 14, 2011) and each Collins Stewart ordinary share at 96.0 pence. The purchase price of 96.0 pence per Collins Stewart ordinary share was paid with approximately 60% cash and 40% Canaccord common shares. Under the terms of the acquisition, Collins Stewart shareholders received 57.6 pence in cash and 0.072607 Canaccord common shares for each Collins Stewart share. The cash consideration portion of the acquisition was funded through a combination of existing cash resources and by drawdown under a new $150 million senior secured credit facility provided by the Canadian Imperial Bank of Commerce.
Through its principal subsidiaries, Canaccord Financial Inc. is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: global capital markets and wealth management.