Toronto-based Dominion General Investment Corp. is proposing to acquire the parent company of investment dealer Hampton Securities Ltd, the company announced on Friday.
The proposed transaction would see Dominion acquire Toronto-based Hampton Equity Partners Ltd., which in turn owns Hampton Securities.
Dominion has entered into a letter of intent with Hampton Equity Partners, which would see Hampton Equity Partners become a wholly owned subsidiary of Dominion, via a share exchange.
The deal would represent a qualifying transaction for Dominion, which is a capital pool company that had its initial public offering on the TSX Venture Exchange earlier this year, and a going-public transaction for Hampton.
Hampton Equity Partners was established in 2014 as a private equity firm “with a goal of building a portfolio of operating business units within the financial services sector.” Along with its securities dealer, the firm “also intends to build an actively managed portfolio comprised primarily of North American high yield equity securities that exhibit a combination of low volatility and sustainable cash flows.”
If the proposed transaction is completed, it is anticipated that the resulting company will be governed by a board of directors that will consist of between three and seven directors, all of whom will be nominated by Hampton Equity Partners. It’s expected that the current executive officers of Hampton Equity Partners will become the new firm’s executive officers.