(Alliance News) - Harwood Wealth Management Group PLC said Monday it has agreed to a GBP90.7 million takeover offer by Hurst Point Topco Ltd, a company formed by funds managed by US private equity firm Carlyle Group.
Hurst Point will acquire Harwood Wealth Management for 145 pence per share, reflecting a discount of 7.9% to the company's closing price on Friday last week at 157.5p. The deal values the company at GBP90.7 million.
Shares in the Hampshire-based wealth management firm were 10% lower at 141.25 pence on Monday in London.
The acquisition is conditional on gaining at least 75% in shareholder approval at the upcoming general meeting as well as being sanctioned by the High Court of Justice in England & Wales.
Harwood Wealth said the long stop date for the acquisition is June 18, 2020. So far, Hurst Point has obtained irrevocable acceptances from around 42.3 million shares in Harwood Wealth, reflecting 69% of the company's entire issued share capital.
"We are pleased to announce this recommended acquisition by Carlyle and Hurst Point. The Harwood management team has demonstrated a strong execution track record, undertaking multiple acquisitions, growing profits and achieving a significant increase in the share price since our IPO in March 2016 at 81p," said Non-Executive Chair Peter Mann.
"Looking ahead, the board believes that Carlyle and Hurst Point will be excellent partners to Harwood, providing the capital backing, strategic support and additional resources and investment needed for the business to continue to grow. We therefore believe the acquisition is in the best interests of all our stakeholders," Mann added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
