(Alliance News) - Premier Asset Management Group PLC and Miton Group PLC have agreed a merger, Premier AM said Wednesday, creating a business with assets of over GBP11 billion.
Under the terms of the deal, Miton shareholders will get 0.30186 Premier AM shares per Miton share. Based on a closing price on Wednesday in London for Premier AM of 171.75p, this values Miton at 56.74p.
However, Miton shareholders would also get a special dividend of 4.9p per share.
Miton shares were 25% higher on Wednesday morning at 51.39p, with Premier AM down 1.0% at 170p.
Following the merger, Miton shareholders would own around 33% of the new business, which will continue to trade on London's AIM as Premier Miton Group PLC.
Premier AM Chief Executive Mike O'Shea said: "This merger will bring together two complementary and culturally-aligned businesses. Both are focused on delivering added value for clients through actively-managed, strongly-performing and relevant investment products.
"The combined group will create a company with greater scale and financial strength to invest for future growth, with broader and deeper investment capabilities, enhanced distribution and a more efficient operating platform. Ultimately, this should position us well for continued growth and deliver value for clients, shareholders and employees."
His counterpart at Miton, David Barron, added: "Miton's expertise in actively managed, differentiated high conviction funds is a very strong complement to Premier's leading position in multi-asset strategies.
"With limited overlap between the two businesses, this merger will result in the ability to offer our clients a broader and more compelling range of investment solutions."
The combined business would have combined assets under management of GBP11.5 billion, as of the end of June.
Premier AM Chair Mike Vogel and CEO O'Shea would have the same roles in the combined company. Miton Chief Operating Officer Piers Harrison would become chief financial officer.
Miton CEO Barron would become a non-executive director.