There is to be more consolidation in the financial services sector with Canadian giant Canaccord winning the hand of UK stockbroker Collins Stewart Hawkpoint.
In a deal that values the UK firm at £255.3m, Canaccord will be offering 57.6p in cash and 0.072607 Canaccord shares for every Collins Stewart share held.
Based on a closing price of C$8.50 for Canaccord on the day before the agreed bid was announced, the terms value each Collins Stewart share at 96p, based on an exchange rate of C$1.6072 to the pound.
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Shares in Collins Stewart shot up 38p to 88.5p on the announcement.
Collins Stewart shareholders will also be entitled to receive a second interim dividend of 2.6p per share, in lieu of a final dividend.
The Collins Stewart directors are recommending acceptance of the Canaccord offer. The Canadian company has received irrevocable undertakings to accept the offer in respect of around 10.7% of the existing issued ordinary share capital of Collins Stewart.
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