(Alliance News) - Augmentum Fintech PLC on Monday said the value of its investment in interactive investor will be boosted after the Manchester-based firm agreed to takeover Share PLC.
The fintech sector investor said its investment in interactive investor, or ii, will rise by 40% to GBP20.7 million from GBP14.8 million at the end of September.
Augmentum shares were 0.5% higher at 97.50 pence each in London on Monday afternoon.
Earlier on Monday, Share, which owns the Share Centre, an online stockbroker focused on retail investors, confirmed it agreed to a GBP62 million takeover from ii. 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 14% higher on Monday afternoon at a price of 33.01p.
Share PLC shareholders will own around 6.8% of the combined company.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Hargreaves Lansdown (HL.)
Augmentum Fint. (AUGM)
