Hello Mr. Metals
***OFF TOPIC***
Since this is a popular topic of conversation, I thought this news item may be of interest.
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C.M. OLIVER AND CANACCORD CAPITAL COMBINE TO CREATE THE LARGEST INDEPENDENT INVESTMENT FIRM IN CANADA
VANCOUVER, Aug. 31 /CNW/ - C.M. Oliver Inc. announced today that its
investment brokerage subsidiary, C.M. Oliver & Company Limited, has reached
agreement to merge its operations with Vancouver-based investment dealer,
Canaccord Capital Corporation. The two full service national investment firms
have operated successfully in Canada for many years - C.M. Oliver since 1907;
Canaccord Capital since 1950.
This combination will create Canada's largest independent employee owned
investment firm with over 20 offices in Canada and international offices and
affiliations in the United States, Britain, Switzerland and Bermuda. The
merged firm, which will operate under the Canaccord Capital name, will have
over 700 personnel, including 400 Investment Advisors, with combined revenues
for the fiscal year ended March 31, 1998 of around $150 million.
The merger will be completed by a transfer of assets, senior management
and other employees of C.M. Oliver & Company Limited to Canaccord Capital. The
purchase price for the assets will be paid out of revenue production for a
maximum of 18 months which is expected to offset restructuring costs and
result, subject to adjustments and other variables which cannot be accurately
predicted at this time, in C.M. Oliver & Company Limited maintaining or
exceeding its current book value at the end of that period. As at July 31,
1998, C.M. Oliver & Company Limited's book value was approximately $11.9
million. This transition will be completed during October 1998.
C.M. Oliver & Company Limited, which will remain a subsidiary of C.M.
Oliver Inc., intends to wind down active brokerage operations. Subject to
regulatory approval, it will maintain its registrations and stock exchange
seats. Operations of C.M. Oliver Financial Corporation and C.M. Oliver
Financial Planning Corp., the financial planning subsidiaries of C.M. Oliver
Inc., will continue unaffected.
''This is a very positive move for C.M. Oliver Inc. to capitalize on the
value of our investment brokerage operations and therefore improve shareholder
value during difficult market conditions. It allows us to combine
complementary strengths while at the same time considerably reducing costs and
overheads,'' commented Darryl J. Yea, President & CEO of C.M. Oliver Inc.
''Our Board felt it was the right time to combine our brokerage operations
with a well capitalized and well managed fully integrated investment dealer
which has the most sophisticated and efficient technology and processing
platform we've seen,'' added Mr. Yea. ''With Canaccord's highly advanced
system operations, we feel the merged firm is the best independent platform to
grow rapidly in the future and take advantage of the expected consolidation in
the industry.''
''This is the fit we were looking for to initiate the next major stage in
growth of our business,'' stated Michael Greenwood, President & Chief
Operating Officer of Canaccord Capital. ''With the C.M. Oliver merger and
others that we hope to conclude with our new partners, we believe we will
become the dominant independent firm in Canada giving individuals,
institutions and corporate clients a viable alternative to the bank and
American owned investment dealers. Canadians will demand a strong independent
competitor and we intend to be that firm,'' Mr. Greenwood went on to say.
C.M. Oliver Inc. is a publicly traded holding company with interests in
the financial services industry through C.M. Oliver Financial Corporation and
C.M. Oliver Financial Planning Corp. These wholly owned subsidiaries provide
financial planning products, services and advice to investors throughout
Canada.
Canaccord Capital offers a full range of professional investment services
including private client services, corporate finance, research, institutional
equities and international trading. Further information on Canaccord Capital
can be obtained through its Internet Web Site at www.Canaccord.com.
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For further information: Darryl J. Yea (604) 605-4000, Michael Greenwood
(604) 643-7790
Regards |
