Ashcourt Rowan has agreed a deal to acquire high net worth investment IFA UK Wealth Management (UKWM), funding the purchase through a share placing.
It will pay £14.25m in cash to private equity group Duke Street for UKWM, alongside an associated placing of shares.
The acquisition will be funded by a placing of 8.25 million shares at 185p, raising approximately £15.3m. The placing price represents a discount of 2.4% to the closing mid-market price of 189.5p per ordinary share as at 12 December 2013
The placing shares comprise 23.4% of the enlarged share capital of the group
Ashcourt Rowan said the acquisition, which is subject to regulatory approval, will create a leading UK wealth manager offering financial advice and investment solutions to individuals and corporates through its network of 17 offices. It also adds a corporate pensions and benefits arm to the wealth manager's business.
UKWM had £1.3bn in AUM at the end of October.
Jonathan Polin (pictured), group CEO of Ashcourt Rowan, said: "This is a transformative deal for Ashcourt Rowan and an important step on our journey to become a leading UK wealth manager."
Ashcourt Rowan also announced seperately on Friday that it had made a pre-tax loss of £2.5m in the six months to September, against a loss of £1.3m in the same period last year. This was due, it said, to exceptional costs related to its acquisition of Generali Portfolio Management and to its change management programme, which has seen the business overhaul its advice and service proposition.
Underlying profits on an EBITDA basis were £0.9m in the period, up from £0.4m the previous year.
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