The offer price marked a 31% premium to the stock's close on Jan. 6, with the initial proposal announced by the management group valuing the firm at nearly C$1.13 billion ($833.64 million).

The special committee said it has been in negotiations with the management group but could not come to an agreement, prompting it to explore potential strategic alternatives to enhance shareholder value.

The committee said its financial adviser RBC Capital Markets suggested an offer of C$12.75-C$15.75 would be fair.

The takeover bid was launched after Canaccord's stock lost 44% of their value in 2022, with its shareholders raising concerns the public markets were undervaluing the company.

"We are pleased to be proceeding with our formal offer, which provides immediate certainty of value and liquidity for Shareholders at a substantial premium in a volatile market," said Chief Executive Dan Daviau.

Canaccord which offers clients with wealth management, broker research and advisory services is among many financial services companies that saw stock value plummet in 2022 as investors grappled with rising interest rates and weighed the likelihood of a severe economic downturn.

The investment management and banking sector especially in North America have seen similar buyouts over the course of last year.

In August, Canada's Toronto Dominion Bank said it will buy New York-based boutique investment bank Cowen Inc for $1.3 billion in cash, seeking to boost its presence in the high-growth U.S market.

($1 = 1.3555 Canadian dollars)

(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)