(Alliance News) - James Hay Holding Ltd said Tuesday that fellow pension services platform provider Nucleus Financial Group PLC has agreed to be acquired for GBP144.6 million.
James Hay is offering 188 pence in cash for each Nucleus share. The AIM-listed stock was up 11% Tuesday morning at 185.97p. James Hay noted the agreed offer price represents a 42% premium to Nucleus's price of 132.5p on December 1 last year, when the offer period began.
On December 2, Edinburgh-based Nucleus had confirmed receiving takeover approaches from London-listed IntegraFin Holdings PLC and from Epris LLP, saying its 52% shareholder Sanlam UK Ltd supported the discussions. Sanlam UK is part of South African financial services firm Sanlam Ltd.
The Cape Town-based financial services firm on Tuesday said its UK subsidiary will receive around GBP75 million, about ZAR1.53 billion, in cash from the takeover.
IntegraFin early in January said it had no intention of making an offer. Others dropping out of the bidding, both in December, were Aquiline Capital Partners LLC and Allfunds (UK) Ltd.
James Hay is indirectly owned by Epris Funds, together with members of the James Hay management team.
James Hay said it provides retirement solutions to larger financial adviser firms, while Nucleus Financial's financial planning and investment platform targets small to medium-sized firms. The merger of the two operations will serve the entire adviser market, creating a financial planning and retirement-focused adviser platform with about GBP45 billion in assets under administration, it said.
Nucleus separately noted the announcement from James Hay, which said that Nucleus directors will unanimously recommend the takeover offer to shareholders. James Hay also has received an irrevocable undertaking from Sanlam to vote in favour of the deal.
Sanlam shares were marginally higher at ZAR61.36 each in Johannesburg on Tuesday morning.
By Tom Waite; thomaslwaite@alliancenews.com
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IntegraFin Holdings (IHP)