Assetco Share News (ASTO)

(Sharecast News) - Wealth management firm AssetCo has now acquired Ocean Dial Asset Management from Avendus Capital following confirmation of relevant clearances from the FCA and Indian regulators.

AssetCo forked out £2.46m in cash for Ocean Dial and also handed over 1.46m ordinary shares in the capital of the company, with a further 1.46m to potentially be issued, subject to adjustment, on a deferred basis until after the end of the calendar year.

All consideration shares have and will be issued at an agreed issue price of 68.3p per share out of Treasury. Following the transfer for the initial consideration, AssetCo has 6.81m ordinary shares remaining in treasury.

The AIM-listed group noted that Ocean Dial's current business was the management of assets belonging to the India Capital Growth Fund, which, as of 22 September 2023, had a net asset value of roughly £156.0m generating an annualised run rate revenue for the manager of £1.86m. The acquisition was expected to be earnings-enhancing and it was anticipated that further synergies will be achievable.

Chairman Martin Gilbert said: "We are delighted to have completed the acquisition of Ocean Dial on the timetable originally envisaged and to welcome India Capital Growth Fund as an important and valued client of our group.

"We are excited about the long-term potential that India offers and see opportunities to add value by bringing Ocean Dial including Gaurav and his team together with the other active equity asset management businesses we are combining under the River and Mercantile brand."

As of 1025 BST, AssetCo shares were trading 0.64% higher at 38.24p.

Reporting by Iain Gilbert at Sharecast.com