TSX runs higher on rate cut expectations
Investing.com -- Guardian Capital Group Limited (TSX:GCG) stock surged 45% in Toronto trade Thursday after announcing a definitive agreement with Desjardins Global Asset Management to take the company private in a transaction valuing Guardian’s equity at approximately $1.67 billion.
Under the terms of the deal, all issued and outstanding Common and Class A shares will be purchased for $68.00 per share in cash, representing a significant premium of 66% and 48% to the last closing prices of Guardian’s Class A and Common shares, respectively. The transaction has received unanimous approval from Guardian’s Board of Directors, with interested directors abstaining.
"The Transaction, with its significant cash premium, is an exceptional outcome for Guardian shareholders many of whom have been patient long-term investors," said George Mavroudis, Guardian’s Chief Executive Officer, who will continue to lead the combined business after the acquisition.
The deal will create a powerful asset management platform with approximately $280 billion in client assets. The transaction marks a strategic move for Desjardins, expanding its wealth management capabilities through the acquisition of Guardian, which has generated approximately 18% annual total return to shareholders over the last 15 years.
The privatization requires approval from at least two-thirds of votes cast by Guardian shareholders, as well as regulatory approvals. Major shareholders holding 32.06% of Guardian shares have already agreed to vote in favor of the transaction, which is expected to close in the first half of 2026.
Until the transaction completes, Guardian expects to continue paying its regular quarterly dividends. Following completion, Guardian will delist from the Toronto Stock Exchange and cease to be a reporting issuer under Canadian securities laws.