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Investing.com -- Canaccord Genuity Group Inc (TSX:CF) stock surged 14.8% on Friday following reports that the company is exploring a potential sale of its UK wealth management business.
The Canadian financial services firm confirmed in a release that it "routinely evaluates strategic initiatives" for its UK wealth management division, acknowledging that these evaluations sometimes involve discussions with potential counterparties. However, the company emphasized that there is no guarantee these discussions will lead to any specific outcome.
The statement came in response to a Reuters report indicating that Canaccord had been approaching potential bidders for its British wealth arm, including private equity firms CVC (ASX:CVC) and Advent. According to the report, which cited unnamed sources, the CEO of Canaccord Wealth has recently held meetings with private equity firms about a possible sale.
Reuters also reported that London-based Fenchurch Advisory is advising Canaccord on the potential transaction, with a formal sales process possibly beginning later this quarter.
Canaccord noted that any strategic initiatives would be evaluated "in consideration of the rights of its strategic and financial minority partner in the UK wealth management business" and would aim to enhance value for all stakeholders, including employees and clients.
The company stated it does not plan to make additional comments on the matter except as required by regulatory obligations, advising shareholders and investors to rely only on information provided directly by the company through its official disclosures.