The FSA has approved Harvard Bidco's £42.8m MBO of Premier Asset Management although the group is still a way off securing the extra shareholder support needed before the deal can go ahead.
On August 13, Harvard Bidco said it had received valid acceptances for 57.2% of Premier Asset Management; some way from the 90% required to secure the deal. As a result, the group decided to extend the offer period until August 24.
Meanwhile, one of the opponents to the deal, Premier shareholder Water Hall Group said today it has bought 36,000 more shares in the asset manager at 288 pence each. This will lift its stake to 6.23%. Unicorn Asset Management is also thought to be against the deal.
Harvard Bidco, which consists of Premier Asset Management senior staff and is backed by private equity firm Electra Investors, says the acquisition will enhance the business in a way that is currently not possible under its listed status.
It says it will be able to expand its assets under management by reinvesting profits in infrastructure, sales and marketing resources as well as attracting and retaining highly talented personnel using equity incentives.IFAonline
Service increasingly key
Aiming to be' top three' UK financial planner
Lowest measure since index launched in 1995
Complaints into double figures
Despite lower median annual earnings