(Alliance News) - Share PLC has agreed to a GBP62 million takeover offer from interactive investor, it confirmed on Monday.
Share PLC owns the Share Centre, an online stockbroker focused on retail investors. Manchester-based interactive investor, or ii, has its own trading and investment platform.
Back in 2017, ii acquired TD Bank Group's UK direct investing business to create the UK's second largest online investment broker behind FTSE 100-listed Hargreaves Lansdown PLC.
ii will be paying in both cash and shares, with some 90% of the offer in stock and 10% in cash. Shareholders in Share PLC will get 4.1 pence in cash and 0.00084 of a ii share per share in Share PLC held.
Based on a value of GBP441.62 per ii share, the deal values each Share PLC share at 41p each, valuing the entire company at GBP61.9 million.
This price is a 41% premium to Share PLC's closing price of 19.00p on Friday in London, with the stock 15% higher on Monday morning in early trade at a price of 33.48p.
Share PLC shareholders will own around 6.8% of the combined company.
Share PLC Chief Executive Gavin Oldham said: "I am delighted to welcome this combination of our businesses, designed to transform the prospects for individual share ownership and personal investment across the UK.
"At our AGM in June 2019, I spoke of our major strategic ambition to transform Share PLC's business over the coming years. We have to grow significantly in order to achieve this, not only in profitability but also in scale and in substance," Oldham continued.
Richard Wilson, the CEO of ii, added: "We are delighted with this transaction. The firms' shared values and combined strengths reinforce the ii Group's position as a leader in the retail investment services marketplace. With our fair flat fees we have built a strong and compelling alternative to percentage fees, in a business that puts the customer first.
"Combining our individual strengths brings further scale and the opportunity to deliver enhanced value, service and customer experience to an enlarged customer base."
"Our purpose is to help customers take direct control of their financial future, providing tools and support to make informed investing decisions. This transaction contributes significantly to that goal," Wilson continued.
By George Collard; georgecollard@alliancenews.com
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