Sanlam UK has put in a bid to acquire wealth manager Merchant Securities.
In a stock exchange filing, the board of Merchant Securities said it has received a preliminary offer from the firm - which is the UK subsidiary of South African financial services group Sanlam limited - to acquire the entire share capital of the company.
Its preliminary approach, which may or may not lead to an offer being made, comes on the back of Sanlam yesterday acquiring a 9.7% stake in Merchant after buying 5,000,000 ordinary shares at a price of 14p per ordinary share.
"The preliminary approach has been made subject to a number of pre-conditions including, inter alia, obtaining a unanimous recommendation from the Board of Merchant Securities and the satisfactory completion of certain due diligence requirements," said Merchant.
A further announcement will be made in due course.
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