(Recasts, updates with detail from both statements)
LONDON (Thomson Financial) - Conister
Financial Group Plc and Equity Special Situations Ltd have agreed a reciprocal share arrangement, with each taking a 9.9 percent stake.
CFG, a holding company for the Conister Trust, will gain 2.04 million shares in ESS at 218 pence each, and will issue 5.58 million shares to ESS at 74 pence per share.
In addition, CFG will make a cash payment of 0.3 million pounds to the AIM-listed investment company, which purchases and holds large stakes in companies and investment funds while assisting management grow the business. Current investments include STM Group Plc, Syndicate Asset Management Plc and Daniel Stewart Securities Plc.
Following the transaction, with the new shares likely to be admitted to trading on AIM on June 26, both companies will hold a 9.9 percent stake, worth a total 4.45 million pounds, in each other's enlarged issue share capital.
Conister Trust is an offshore private bank based on the Isle of Man with a Tier 1 capital ratio of 25 percent.
ESS, which raised 8.625 million pounds via two share placings in February and April, said the agreement will enable it to create potential synergies within its existing investment portfolio of companies.
Arron Banks, CEO of CFG added that its new management team is 'currently reviewing a number of strategic transactions within the financial services sector and we look forward to gaining from ESS's input'.
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