Investec plans to take over the remaining 52% stake in investment management firm Rensburg Sheppards for £412m.
The group already owns about 48% of Rensburg Sheppards' existing issued capital and has agreed to acquire the remaining stake at 916p per share, a 48% premium on Rensburg's closing mid-market price of 620p yesterday.
Under the terms of the offer, Rensburg shareholders will receive 1.63 newly issued Investec shares in exchange for each share currently held.
Rensburg had £12.3bn under management at 31 December 2009 through Rensburg Sheppards Investment Management and Rensburg Fund Management. Upon completion of the offer, Rensburg Sheppards will become part of Investec's Private Client Activities division.
Investec has obtained letters of intent from Schroders and BlackRock, which own approximately 7.7% and 2.9% of Rensburg, to vote in favour of the deal.
The new Investec shares to be issued under the scheme are expected to represent about 7.8% of the issued share capital of Investec and 5.1% of the combined issued share capital of Investec and Investec Limited.
No dividends shall be paid by Rensburg between the date of this announcement and the effective date. The Investec shares issued to Rensburg shareholders pursuant to the offer will rank for Investec's final dividend in respect of the year ending 31 March 2010, expected to be paid in August.
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