After a month of dissension over a deal to consolidate ownership of Richardson GMP, shareholders of Toronto-based GMP Capital Inc. voted in favour of the transaction on Tuesday.
Almost 95% of minority shareholders represented at the special meeting approved the transaction, which was first announced in February and revised in August. The deal is expected to close within 30 days.
Under the terms voted on, Richardson GMP advisors will own 30.65% of GMP common shares; Winnipeg-based Richardson Financial Group will own 43.77% and GMP minority shareholders will hold 25.58%.
The ownership percentage was revised late last month when, facing pressure from former executives, GMP agreed to a $40-million share buy-back to be paid to minority common shareholders.
GMP Capital chair Don Wright said in a release on Tuesday that the vote is “a powerful statement in support of our growth strategy.”
When the transaction closes, Richardson GMP — which is rebranding as Richardson Wealth — will have 164 advisory teams serving 32,000 clients with $29 billion in assets under administration, the firm said.
“Our focus now turns toward delivering on our promise to clients, shareholders and our investment advisors, and that is to build a dominant wealth management platform serving the needs of high net worth Canadians across the entire household balance sheet,” said Andrew Marsh, president and CEO of Richardson Wealth, in a release.
GMP will be renamed RF Capital Group Inc. when the transaction closes, with the branding change scheduled for Jan. 1.
In addition to approving the transaction, shareholders also re-elected the company’s board.