(Reuters) -Canaccord Genuity said on Friday it is evaluating options for its British wealth management business and had met with potential counterparties.
The statement followed a Reuters report on Thursday that the Canadian financial services group had approached potential buyers for the unit, including CVC and Advent.
The company cautioned that the review does not assure a deal outcome and said it would not comment further except as required by regulation.
Shares of the Vancouver-based company were up nearly 16% in afternoon trade.
The unit’s chief executive has recently held meetings with private equity firms about a possible sale that could move to a formal phase later this quarter and is expected to be advised by London-based boutique investment bank Fenchurch Advisory, the report added.
The wealth arm could fetch a valuation of more than 1 billion pounds ($1.34 billion), Reuters reported.
Canaccord Genuity’s market capitalization is C$1.05 billion ($747.86 million) according to LSEG data, calculated in session.
“At times, these evaluations involve discussions with potential counterparties, however, there can be no assurance that such discussions will result in any specific outcome,” the financial services group said in a statement.
“The company does not intend to make any additional comments with respect to this matter except as required under its regulatory obligations.”
(Reporting by Pritam Biswas in Bengaluru; Editing by Tasim Zahid)
