Fee-based adviser and asset management firm Brooks Macdonald has agreed a £4m deal to acquire structured product and property group Braemar.
The 2.25p per share offer, which has been agreed by the Braemar board, is at a 63.6% premium to Braemar's closing price last night.
Braemar, through its Securities and Estates core divisions, manages a range of investment products and property funds.
Its Securities operation designs, promotes and manages structured products and promotes its funds to high net worth individuals, via IFAs and other regulated entities.
Braemar's range of funds comprises three Oeics investing in agricultural land, student accommodation and ground rents - as well as nine closed-ended residential property vehicles. The value of funds under management stood at about £44m at 31 March.
Wealth management group Brooks Macdonald, which had £2.05bn under management as at 31 March, believes the Braemar acquisition will strengthen its scale and distribution in the UK retail market.
"Brooks Macdonald had already evaluated three of Braemar's property funds with a view to investing," the group says.
"When subsequently introduced to the opportunity to acquire Braemar, Brooks Macdonald felt that it could provide capital to strengthen further Braemar's marketing, to expand its distribution capabilities and to provide scale and liquidity to the Braemar funds."
The groups say the business and identity of the Braemar Group will continue substantially as it is at present.
"I believe this to be an excellent opportunity for shareholders, clients and staff of both organisations," Brooks Macdonald CEO Chris Macdonald says.
"Braemar has a strong management team, fund management range and property management business which will complement Brooks Macdonald's existing offering and is in keeping with Brooks Macdonald's strategy of expanding its niche range of funds."
Brooks Macdonald has received irrevocable undertakings equating to 68.1% of existing issued Braemar ordinary shares.
An added tier of asset management can of course deliver additional benefits for certain investors, writes Graham Bentley - just be sure you can justify it to the regulator and, especially, the client
The government is "in daily contact" with industry figures over the pensions dashboard as it prepares for the roll-out and its feasibility report, Guy Opperman has said.
Organisation led by Johnny Timpson
From 1 April 2019
Available in eight languages