Canaccord take-private bid over as management offer expires

By Mark Burgess | June 14, 2023 | Last updated on October 27, 2023
2 min read

The management buyout offer for Canaccord Genuity Group Inc. is not going ahead, but an independent committee may continue to consider other transactions, the firm said Wednesday.

The management group led by CEO Dan Daviau and chairman David Kassie decided not to extend its $1.1-billion offer to take the company private beyond the June 13 deadline.

Earlier this month, the group said there was “no reasonable chance” the conditions of the offer would be met by the deadline due to an unrelated regulatory issue at one of its subsidiaries.

Last week, Canaccord’s board recommended shareholders reject the offer.

After the deal expired, Canaccord announced a two-year “standstill agreement” between the firm and the management group. The agreement includes voting support from certain members of the management group for board-supported director nominees, and allows for an independent committee to consider “alternative transactions.”

Canaccord said in May that it was opening up proposals to sell individual parts of the company, which had previously been prohibited as part of the management bid.

As of May 31, the special committee had not received any proposals for a full purchase of Canaccord Genuity, but had received “preliminary indications of interest” in the company’s wealth businesses, according to a June 4 shareholder supplement.

The agreement also allows for reimbursement of “certain reasonable expenses” for the management group.

Canaccord shuffled executive roles this month, naming Stuart Raftus CEO for Canaccord Genuity Corp., the firm’s Canadian business. Raftus continues to lead Canaccord Genuity Wealth Management in Canada.

Jason Melbourne was named head of the Canadian capital markets business. Melbourne replaces Pat Burke, who is now a special advisor. The moves were first reported in the Globe and Mail.

The management group launched its bid to take the firm private in January. Members of a special committee reviewing the bid opposed the offer but later resigned, making way for members more sympathetic to management’s offer.

Canaccord said Wednesday that Rod Phillips and Amy Freedman, who joined the board in March, were appointed to the audit and risk committee and the corporate governance and compensation committee.

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Mark Burgess

Mark has been the managing editor of since 2017. He has been covering business and politics for more than a decade. Email him at