GMP May Get $137 Million for Richardson GMP Stake Sale: Analyst

  • Wealth management platform could fetch C$544 million
  • A sale at that price is already be reflected in GMP’s shares

GMP Capital Inc. could receive about C$180 million ($137 million) from the sale of its stake in the Richardson GMP Ltd. wealth-management platform, a price that’s already reflected in its shares, Scotia Capital analyst Sumit Malhotra said.

Richardson GMP, a partnership between Winnipeg-based James Richardson & Sons Ltd., Toronto-based GMP and its advisers, has an agreement between its owners that could trigger a sale. The business, based on a valuation of 2 percent of assets under administration, could fetch C$544 million for the owners if sold, Malhotra said Thursday in a note.

With GMP shares trading around C$5, a sale by the brokerage around that amount would already be reflected in the current stock price, Malhotra said in his note. GMP Capital owned about 31 percent of the wealth management partnership at the end of 2015, according to regulatory disclosures.

Firms including Raymond James Financial Inc. have shown interest in acquiring Richardson GMP if it were up for sale. The Globe and Mail reported earlier in the month that Toronto-Dominion Bank and Wells Fargo & Co. are among firms interested in bidding on the wealth-management platform. Rival brokerage Canaccord Genuity Group Inc. and National Bank of Canada have said they’re not interested in the platform.

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