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(Alliance News) - Wealth manager Rathbone Brothers PLC on Wednesday proposed placing to raise GBP50 million as it announced an acquisition of Saunderson House.
Under the terms of the transaction, total consideration of GBP150.0 million will be payable to funds advised by Epiris LLP and the management and employees of Saunderson House. This will comprise initial cash and share consideration amounting to GBP135.1 million, including the repayment of debt, structured as GBP130.2 million in cash and GBP4.9 million in new Rathbones shares payable at completion.
The initial cash consideration will be funded from a combination of internal cash resources and the proceeds of a proposed GBP50.0 million placing. The final number of placing shares, the timing of the closing of the bookbuild and allocations are at the discretion of Peel Hunt and RBC Europe Ltd, which are acting as joint bookrunners in connection with the placing.
Rathbones has also agreed to pay deferred consideration of GBP14.9 million on the first anniversary of completion. This will comprise GBP10.9 million in cash and GBP4.0 million to be paid in new Rathbones shares.
Saunderson is a professional services-focused financial planning business in the UK with GBP4.7 billion of funds under management. Therefore, Rathbone said the acquisition of Saunderson further strengthens its financial planning capability and enhances its ability to offer a more holistic wealth management proposition to clients when appropriate.
"Commonly shared values and a resolute focus on delivering quality client outcomes provide a firm foundation from which to take advantage of some exciting growth opportunities," said Rathbone Chief Executive Paul Stockton.
Rathbone shares closed 1.0% lower in London on Wednesday at 1,910.00 pence each, giving it a market capitalisation of GBP1.12 billion.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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