(Alliance News) - AFH Financial Group PLC on Monday announced that it has agreed to a GBP224.5 million takeover offer made by Cortina Bidco Ltd.
Cortina Bidco is a company controlled by funds managed by Flexpoint Ford LLC, a Chicago-based private equity firm that is focused on financial services and the healthcare industry, and the independent directors of AFH Financial.
Under the acquisition's terms, Flexpoint will acquire the wealth manager for 463 pence per share, reflecting a 16% premium to AFH's closing price on 397.50p on Friday last week.
Shares in the wealth manager were 15% higher on Monday at 455.00 pence in London. As of Friday's close, AFH's shares were up 16% so far in 2021.
The acquisition is conditional on gaining approval from the UK Financial Conduct Authority, gaining at least 75% in shareholder approval at the upcoming court and general meeting, and the scheme being sanctioned by the High Court of Justice in England and Wales.
AFH said the acquisition has a long stop date of June 30. So far, Flexpoint Ford has obtained irrevocable acceptances from around 14.2 million shares in AFH, reflecting 33% of the company issued share capital.
"We believe the offer reflects our strong track record of increasing shareholder value, Flexpoint's endorsement of our strategy and confidence in the continued success of AFH, as well as further investment required in the business," said Chief Executive Officer Alan Hudson.
"Through its portfolio of leading financial services investments, Flexpoint has demonstrated its strong track record of partnering with entrepreneurial businesses, and the Executive Directors and I believe there is a great strategic and cultural fit for clients, staff and wider stakeholders. With the backing of Flexpoint's expertise and access to capital, we believe that we will be able to accelerate the delivery of our strategy," Hudson added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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