(Alliance News) - Charles Stanley Group PLC on Thursday said it has accepted a GBP278.9 million takeover offer from US investment bank Raymond James Financial Inc.
Under the acquisition's terms, Raymond James will acquire the London-based wealth management firm for 515 pence per share in cash, reflecting a 44% premium to the company's closing price on Wednesday at 359p.
Shares in Charles Stanley were 43% higher at 512.54 pence on Thursday midday in London, giving a market capitalisation of GBP267.1 million.
The acquisition is conditional on gaining at least 75% in shareholder approval at both the court and general meeting, as well as approval from the UK Financial Conduct Authority.
The scheme must also be sanctioned by the High Court of Justice in England & Wales.
Charles Stanley expects the acquisition to be completed in the fourth quarter of 2021. So far, St Petersburg, Florida-based Raymond James has obtained irrevocable undertakings from around 20.1 million shares in Charles Stanley, reflecting 39% of the company's entire share capital.
"The board believes that the terms of the acquisition represent fair value and an attractive premium for Charles Stanley shareholders and therefore intends to recommend unanimously that shareholders vote in favour of the acquisition. Raymond James recognises Charles Stanley' reputation, heritage and talented staff, as well as our shared client-centric approach and compatible structures and cultures. Supported by the clear strategic rationale and intentions Raymond James has described today, I believe all stakeholders will benefit from the opportunities for growth arising from Charles Stanley becoming embedded within the Raymond James group," said Chief Executive Paul Abberley.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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