Allens Arthur Robinson (Allens) has advised BGF Equities, a securities advisory firm in Australia, on the sale of a 50 per cent interest in its business to Canaccord Financial, a Canadian financial services firm listed on the Toronto Stock Exchange.
BGF Equities, which has offices in Melbourne, Sydney and Hong Kong, provides stockbroking services to clients in Australia, Asia and the United Kingdom with a strong focus on emerging growth companies.
Under the deal, Canaccord will acquire a 50 per cent interest in BGF Equities by purchasing shares from existing shareholders, including management, and by subscribing for new shares. The total consideration payable by Canaccord for their interest is about A$40 million.
The deal remains subject to conditions, including regulatory approval, and is planned to complete later in the year.
If completion is successful, BGF Equities will be renamed ‘Canaccord BGF Capital Group Pty Ltd’ and, following about a five year period from completion, Canaccord may exercise an option to acquire the remaining fifty percent interest in BGF Equities.
Partner Robert Pick, who led the Allens team, was pleased to advise BGF Equities because the deal with Canaccord represents the next phase of growth through an upscale of operations and addition of advisory capabilities.
‘It is very exciting and satisfying to work with an emerging business like BGF Equities and their dynamic management team, and to assist them with a deal that creates rewarding opportunities for BGF Equities’ investors and employees,’ Mr Pick said.
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