GMP Capital selling capital markets business to U.S. firm Stifel Financial
Posted Jun 17, 2019 5:53 am.
This article is more than 5 years old.
TORONTO — GMP Capital Inc. has signed a deal to sell its capital markets business to Stifel Financial Corp. in a deal worth roughly $70 million.
Under the deal, Stifel, which is based in St. Louis, Missouri will pay the tangible book value of the business, less cash, plus $45 million.
GMP chief executive Harris Fricker and other key personnel have agreed to join Stifel once the deal closes.
The company said assuming the successful completion of the transaction it plans a one-time return of capital distribution of 27.5 cents per share.
The sale and the return of capital payment require approval by a two-thirds majority vote by shareholders.
GMP says it plans to make its wealth management business the core of its growth strategy going forward. The firm, which holds a 33 per cent stake in Richardson GMP Ltd., says it is in talks with Richardson Financial Group Ltd. to acquire the stake it does not already hold.
Companies in this story: (TSX:GMP)
The Canadian Press
