Close Brothers to sell wealth management arm for £200m

In a stock exchange notice today (19 September), Close Brothers said the equity value of up to £200m represents a multiple of 27x CBAM's statutory operating profit after tax for the year to 31 July 2024, and includes a £28m of contingent deferred consideration in preference shares. The group will retain all upfront cash proceeds from the sale, around £172m – of this, a cash consideration of £146m will be paid on completion and a dividend of £26m will be paid by CBAM to Close Brothers on or before completion. The contingent consideration will be redeemable "no later than Oaktree's exit...