GMP Capital consolidating ownership of Richardson GMP in all-stock deal
Posted February 26, 2020 4:42 am.
This article is more than 5 years old.
TORONTO — GMP Capital Inc. has signed a agreement to acquire the stake in Richardson GMP Ltd. that it doesn’t already own in an all-stock deal.
The company says the move is the next step in its plan to focus its business on wealth management.
GMP sold the bulk of its capital markets business to Stifel Financial Corp. in a deal worth roughly $70 million last year.
Under the agreement today, GMP says it expects to issue nearly 111 million shares to shareholders of Richardson GMP. GMP shares closed at $1.80 on the Toronto Stock Exchange on Tuesday.
Richardson Financial Group Ltd. (RFGL), GMP’s largest shareholder with a 24.1 per cent stake, will increase its ownership to 39.7 per cent following the completion of the deal.
Existing GMP shareholders, other than RFGL, will hold 30.7 per cent and Richardson GMP investment advisors will hold 29.6 per cent.
This report by The Canadian Press was first published Feb. 26, 2020.
Companies in this story: (TSX:GMP)
The Canadian Press
