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(Sharecast News) - Asset and wealth manager AssetCo has received approval from the Financial Conduct Authority (FCA) for its change in control application, it announced on Tuesday, paving the way for its planned acquisition of Ocean Dial Asset Management from Avendus Capital Asset Management UK.
The AIM-traded firm said finalisation of the deal was contingent on receiving the necessary regulatory clearances from India, which were said to be nearing completion.
It first outlined the details of the acquisition on 6 March, and confirmed a price tag of £4.125m, which could be subject to adjustments.
The settlement terms comprised the issue of 2,928,258 shares in the capital of AssetCo and a cash payment of £2.125m.
It said the financials suggested that the acquisition would likely prove to be a lucrative one for the group.
Importantly, AssetCo's economic interest in Ocean Dial would start from the date of the FCA approval.
AssetCo said Ocean Dial plays an important role in the management of assets for the India Capital Growth Fund.
As of July, the net asset value of the fund topped £150m, resulting in an annualised run rate revenue for the manager of about £1.8m.
It also noted the performance of the fund, particularly its 7% outperformance of its benchmark over the past year to July.
"The approval of the FCA is a significant step forwards and brings us closer to completing our acquisition of Ocean Dial, which will broaden and strengthen our equity management capability," said chairman Martin Gilbert.
"We are delighted to celebrate that progress on Independence Day for India, recognising that we await final approval from the Indian regulators."
Gilbert said India was making "significant progress", adding that its economy had the potential to match or even overtake those of the US and China in the longer term.
"The country is home to some market leading companies and a remarkable pool of talent.
"We are excited to be one step closer to being able to complete our acquisition of Ocean Dial."
Reporting by Josh White for Sharecast.com.
