Canaccord eyes Hong Kong license in BGF deal

The Globe & Mail reports Canaccord Financial’s purchase of a stake in Asian brokerage firm BGF Equities gives it something it needs to ensure a chance at a role on one of the big transactions of later this year – a license to deal in Hong Kong.

The license could come just in time. One of the biggest transactions on the horizon is the planned Hong Kong Stock Exchange initial public offering of Sunshine Oil Sands, which could reach $1 billion.

The Globe and Mail reports Sunshine is a long-time Canaccord client, but without a license to operate in Hong Kong, Canaccord faced the possibility that it wouldn’t be able to work on the biggest Sunshine deal of all. If Canaccord can clip a fee on that transaction, it would go a long way to making a downpayment on the $40-million (Australian) that Canaccord is paying for half of BGF.
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