CA - Management-led offer to buy Canaccord may expire June 14 uncompleted

2023-06-02 07:49:51 ET

The management-led group that has offered to acquire Canaccord Genuity Group ( OTCPK:CCORF ) said Friday there's "no reasonable chance" that the conditions to its offer to acquire the investment firm will be satisfied before the offer expires on June 13, 2023 at 11:59 PM ET.

At this time, the group hasn't decided on whether it will extend its offer, "and there can be no assurance that the offer will be extended," the group said in a statement. On June 14, it will announce whether conditions to the offer were satisfied and whether the offer has been extended.

On February 27, the group, made up of Canaccord's ( TSX: CF:CA ) executive leadership and its largest shareholder, formally started an all-cash offer of C$11.25 per share to take the company private.

A special committee of the company's board issued a statement the same day saying it didn't support the management buyout offer and hired an adviser to explore alternative transactions.

In March, though, five directors resigned from Canaccord's ( OTCPK:CCORF ) board after a significant shareholder, SKKY Capital, requeste to remove the special committee directors, alleging that they didn't satisfy their fiduciary duties. The new committee restarted the process of considering the management offer and any viable alternatives.

Earlier in May, Canaccord ( OTCPK:CCORF ) received notice from regulatory authorities that the approval for change in control proposed in the management-led offer would not be granted on an expedited basis, making it unlikely that the deal could gain approval by June 13.

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