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GMP Capital buys Macquarie Private Wealth Canada for $132 mln

Published: 09:43 10 Sep 2013 EDT

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The wealth management arm of GMP Capital (TSE:GMP) has acquired Macquarie Group's Canadian retail operations, Macquarie Private Wealth, in a deal worth $132 million.

The transaction will boost Richardson GMP's assets under management to $28 billion. 

"This transformational transaction for Richardson GMP reinforces our position as the largest independent wealth management firm in Canada," said Andrew Marsh, president and chief executive of Richardson GMP.

According to terms of the agreement, Richardson GMP will purchase all outstanding shares of MPW Canada, which will be financed by means of a private placement. Both Richardson Financial Group, a subsidiary of James Richardson & Sons, and GMP Capital, will subscribe to Richardson GMP's preference share offering, leading to proceeds of $60 million.

GMP said an additional $30 million will be raised by a common share offering to all Richardson GMP shareholders on a pro rata basis. Upon completion of the offering, GMP and Richardson Financial will still own equal interests in Richardson GMP, while Richardson GMP's management and investment advisors will hold the balance.

The transaction is expected to be completed sometime during the fourth quarter of 2013.

Shares of GMP have risen 3.4% so far this year. 

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