Last checked at 8 Jan 2021 10:51
8 January 2021
AssetCo plc
("AssetCo" or the "Company")
Acquisition of minority stake in River and Mercantile Group Plc
AssetCo plc announces that it has acquired a 2.9% shareholding of 2,500,000 ordinary shares in River and Mercantile Group Plc (the "Investment"), an asset management business, at £1.86 per share representing a premium of 1.2 per cent to the closing share price of 183.75 on 7 January 2021, the last practical date prior to this announcement. The Investment totalling £4.7m is being paid out of cash.
The Investment represents a substantial transaction pursuant to AIM Rule 12. Shareholders should be aware that there is the potential that further similar corporate activity or changes of strategy may result in a fundamental change to the Company's business, Board or voting control, including the potential to transition from an operating company to an investing company. Therefore if any such transaction or change occurs, the Company may be subject to the requirements of AIM Rules 8 and 14.
Current Trading
The Board has been focusing on regaining and developing our business in the Middle East and concluding the Grant Thornton litigation.
The Board is in regular contact with our Middle East staff, and our sponsor and contacts, concerning business development opportunities, but the Company's progress has been slower than planned because of the inevitable lockdowns and travel restrictions arising from the pandemic.
The Company is in a strong financial position having now received the outstanding amount from Grant Thornton, and after the Tender Offer completed on 23 December the Company still has positive cash balances amounting to approximately £31million prior to completing this Investment.
Tudor Davies, Chairman "This investment in River and Mercantile Group Plc presents an interesting opportunity to provide value to our Shareholders, and will sit alongside the existing strategy of pursuing new business in the Middle East."
Enquiries:
AssetCo plc
Tudor Davies, Chairman
Tel: +44 (0) 7785 703523
+44 (0) 20 7614 5900
Arden Partners plc
Nominated adviser and broker
John Llewellyn-Lloyd / Dan Gee-Summons / Nick Wright
Tel: +44 (0) 20 7614 5900
TooleyStreet Communications
Fiona Tooley
Email: fiona@tooleystreet.com
Mobile: +44 (0) 7785 703523