LONDON (Alliance News) - Alternative asset manager Gresham House PLC said Wednesday its subsidiary Gresham House Holdings Ltd will buy the entire capital of UK sustainable asset investment firm FIM Services Ltd for a total of up to GBP25 million.
The acquisition is part of an investment to combine two UK commercial forestry management and renewables firms, increasing Gresham House's presence across other specialist investment strategies sectors including forestry and new energy.
Gresham House will initially pay GBP21.0 million divided into GBP11.2 million in cash and GBP9.8 million in loan notes. It will subsequently decide to pay a further GBP4 million subject to completion of performance targets two years after the acquisition.
The acquisition will increase Gresham House's assets under management to over GBP1.5 billion.
To raise cash to help pay for that element of the buy, Gresham House will place new shares at a price of 410.00 pence per share to raise GBP15 million.
Gresham House shares were trading at 417.50 pence, up 3.1%, on Wednesday morning.
Commenting on the acquisition Anthony Dalwood, Gresham House's chief executive, said: "The acquisition of FIM will allow Gresham House to achieve scale and establish a market leading position as an investor in UK commercial forestry whilst also enhancing the Gresham House New Energy division.
"Over the last three years, we have rapidly established Gresham House as a platform for growth for specialist asset management teams. The strategic rationale, alongside the potential financial returns, are clear and exciting for Gresham House shareholders."
