Evolution Group, whose UK-based wealth manager Williams de Broe bought a regional private investment management business of BNP Paribas Wealth Management earlier this month, has revealed a second bidder for its entire operation.
Canada’s Canaccord Financial has expressed interest in acquiring Evolution.
Canaccord’s move comes after South-Africa’s investment firm Investec commenced talks with Evolution on 4 August.
Canaccord targets growth in wealth management
Media reports suggest that the Canadian financial services firm is implementing its acquisitions-driven strategy in a bid to expand Canaccord WealthManagement abroad.
As a result of Canaccord’s interest, Evolution’s shares on the London Stock Exchange increased more than 11% on Tuesday, before dropping 4% by midday on Wednesday.
Canaccord’s interest is subject to a number of pre-conditions including, among others, obtaining a unanimous recommendation from the Evolution board and the satisfactory completion of due diligence, the firm said in a statement.
The Canadian firm also reserves the right to waive any or all of its pre-conditions.
Small AuM base
Canaccord released its first quarter results for the 2012 fiscal year on 3 August.
Canaccord Wealth Management’s assets under management stood at $575m, while its assets under administration reached $15.7bn as at the end of the first fiscal year quarter.