Assetco Regulatory News (ASTO)

6 March 2023

LEI: 213800LFMHKVNTZ7GV45

For Immediate Release

AssetCo plc

("AssetCo" or the "Company")

Conditional acquisition of Ocean Dial Asset Management Limited by AssetCo

AssetCo (AIM: ASTO), the agile asset and wealth management company, is pleased to announce that it has reached agreement to acquire the entire issued share capital of Ocean Dial Asset Management Limited (the "Acquisition") from Avendus Capital Asset Management (UK) Limited for a total consideration of £4.125 million (the "Consideration").

The Consideration will be satisfied by the delivery of 2,928,258 ordinary shares of £0,01 each in the capital of the Company ("Ordinary Shares") and £2.125 million in cash of which 732,065 Ordinary Shares and £500,000 shall be deferred until after the calendar year end in accordance with the provisions of the Sale and Purchase Agreement. The Ordinary Shares that form part of the consideration will be transferred out of treasury post completion.

The Acquisition is conditional on, inter alia, approval by the FCA to a change in controller which is expected to occur by the end of Q2 2023 and the Reserve Bank of India and Securities Exchange Board of India which is expected to run into Q3 2023. The Company will provide further updates, as appropriate.

About Ocean Dial Asset Management

Ocean Dial was established in 2005 and is wholly owned by Avendus Capital Asset Management (UK) Limited. Ocean Dial's current business is the management of the assets of the India Capital Growth Fund Limited, which, as at 28 February 2023, had a net asset value in excess of £127m and an annualised run rate revenue of £1.4m. The Acquisition is expected to be earnings enhancing for the Group and it is anticipated that further synergies will be achievable following completion. Ocean Dial will have net assets as at completion of not less than £250,000 or such other sum as may be required in order to meet its regulatory capital requirements. The fund has been successfully advised for several years by Guarav Narain and team, based in India.

Martin Gilbert, Chairman of AssetCo, commented:

"We are delighted to welcome India Capital Growth Fund as a client of our Group and look forward to working with the Fund's current management to provide the Fund's Board with a first class service. AssetCo's mission is to acquire, improve and grow asset management businesses with potential. We are excited about the long-term potential that India offers and see opportunities to add value by bringing Ocean Dial together with the other active equity asset management businesses we are combining under the River and Mercantile brand."  

Gaurav Deepak, Co-Founder and CEO of Avendus Capital (India) added: 

"Avendus is delighted to have concluded an arrangement with AssetCo, a UK AIM-listed company, for the sale of our ODAM business. This sale will benefit all the stakeholders of ODAM and allow us to participate in AssetCo's on-going success as a shareholder. We look forward to working with Martin and his team to complete the transaction and to a long and fruitful future relationship."

For further information, please contact:

For further details, visit the website, www.assetco.com

Ticker: AIM: ASTO.L