(Toronto) Canaccord Genuity Group said Monday a regulatory issue with one of its overseas subsidiaries could delay a planned management buyout of the company.
The financial services firm said the unspecified issue at its capital markets business makes it unlikely to receive takeover approval by its June 13 expiry date. Likewise, the transaction may not be secured for financing commitments related to the transaction until the August 9 expiration date.
According to Canaccord, the issue is not related to the agreement and its subsidiary has made significant improvements to its compliance functions alongside significant additional investments in people and technology.
The company did not immediately respond to a request for more details on the regulatory issue, but said in a press release that it expects the issue to be resolved promptly and will have a significant impact on its finances.
A Canaccord special committee is still reviewing the proposal by the company’s executives and employees, who offered $11.25 per share to take it private at a little over $1.1 billion.
The group of employees includes CEO Daniel Daviau and President David Kassie, as well as all members of the company’s Global Operating Committee and other key and permanent employees in its operations.
Company in this show: (TSX: CF)
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