LONDON (Alliance News) - Charles Stanley Group PLC said Wednesday it has agreed to sell some aspects its Charles Stanley Securities division to Panmure Gordon (UK) Ltd, part of Panmure Gordon & Co PLC, for up to GBP6.5 million.
An initial payment of up to GBP1.5 million in cash will be paid on completion, and a further up to GBP5 million will be paid as a deferred consideration depending on the performance of those parts of CSS being sold. Charles Stanley said it plans to use the proceeds for general corporate purposes.
Charles Stanley will retain its agency sales trading business. The assets being sold accounted for around GBP1 million of the company's pretax profit in the year to end-March. In the year to March 31, 2014, Charles Stanley reported pretax profit of GBP6.1 million.
Charles Stanley is due to provide its results for the year March 31, 2015 on Thursday.
Completion of the sale is expected to happen within around four weeks.
Panmure said it expects the acquisition to significantly increase the overall size of its portfolio of corporate clients.
"We are excited about the addition of the Charles Stanley Securities business which will continue our strategy of growing the company, to focus firmly on serving our corporate and institutional clients and to improve value for our shareholders," said Panmure Gordon Chief Executive Phillip Wale in a statement.
Shares in Charles Stanley closed down 0.1% at 391.60 pence, shares in Panmure closed up 1.8% at 145.00 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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