Canaccord Completes Acquisition Of Chinese Firm

Vanessa Doctor

18 January 2011

Canaccord Financial has completed its acquisition of China-based boutique investment bank The Balloch Group.

The Toronto-based financial services firm will be paying C$4 million (around $4.034 million) for TBG, along with an equity incentive plan that will provide principal employees an additional payout of as much as 1,187,847 Canaccord common shares, the company said in a statement. This is worth C$13.5 million based on the present issue price of C$11.3651 per share.

As a result of the takeover, all businesses in China will be renamed into Canaccord Genuity Asia, with immediate effect. Howard Balloch, the president of TBG, will also be joining Canaccord's board of dierctors and will serve as chairman of the Asia business.

Canaccord operates worldwide in two key segments: wealth management and global capital markets. The company announced its planned acquisition of the Chinese firm in November 2010.