GMP Capital selling capital markets business to US firm Stifel Financial

Companies in this story: (TSX:GMP) The Canadian Press TORONTO — GMP Capital Inc. has signed a deal to sell its capital markets business to Stifel Financial Corp. in a deal worth roughly $70 million.Under the deal, Stifel, which is based in St. Louis, Missouri will pay the tangible book value of the business, less cash, plus $45 million.GMP chief executive Harris Fricker and other key personnel have agreed to join Stifel once the deal closes.The company said assuming the successful completion of the transaction it plans a one-time return of capital distribution of 27.5 cents per share.The sale and the return of capital payment require approval by a two-thirds majority vote by shareholders.GMP says it plans to make its wealth management business the core of its growth strategy going forward. The firm, which holds a 33 per cent stake in Richardson GMP Ltd., says it is in talks with Richardson Financial Group Ltd. to acquire the stake it does not already hold.

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