Feb 15 (Reuters) - British stockbroker Daniel Stewart Securities said on Monday it bought financial consulting business MENA-RL for 1.1 million pounds ($1.72 million) in shares to enhance its geographic reach.
Daniel Stewart will issue 50 million shares for the acquisition, the company said in a statement. The deal value was based on the stock's Friday close of 2.125 pence.
Adam Wilson, who owns MENA, will assume the role of chief executive of the enlarged group on April 6, while Daniel Stewart's CEO Peter Shea will move into the newly created role of executive chairman.
After the acquisition, Wilson's beneficial holding in the company will be 61.3 million shares, or 16.9 percent of the issued share capital.
The acquisition is expected to complete on Feb. 28.
'The addition of MENA clearly bolsters our offering,' Wilson said in a statement. 'We very much remain on the look out for further acquisitions as we focus on cementing our position within the small cap broking sector.'
MENA, which focuses on deal execution, project management and fund raising, has about 20 clients and provides services in Europe, Africa and the six Gulf Cooperation Council states.
It reported pretax profit of $349,339 on turnover of $1.3 million in the period to Dec. 31, 2009, and had net assets of $351,515 as on Jan. 31, 2010.
By 0806 GMT, shares in Daniel Stewart were trading up 5.9 percent at 2.25 pence on the London Stock Exchange.
(Reporting by Purwa Naveen Raman in Bangalore; Editing by Unnikrishnan Nair) ($1=.6379 Pound) Keywords: MENA/TAKEOVER DANIELSTEWART
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