Intuitive Investment Group Regulatory News (IIG)

29 Sep 2005 06:00

iimia Investment Group PLC29 September 2005 iimia furthers its strategic ambitions through the acquisition of Intelli. Salient Points * Acquisition today of Intelli Partners Limited ("IPL"), the holding company of Intelli Corporate Finance Limited ("Intelli"), a corporate finance advisory company specialising in the closed-end fund and investment management sectors (the "Acquisition"). Intelli operates from offices located in London and Edinburgh * The consideration for the Acquisition is the issue of 3,750,000 new ordinary shares in iimia, valuing IPL at approximately ‚£5.3 million * Acquisition is expected to be earnings enhancing within first full year of ownership and is in line with Group's stated strategy to build the business into a high quality financial services company * IPL shareholders will own approximately 24.3% of iimia's enlarged share capital following the Acquisition * Gordon Neilly, Chief Executive of Intelli, has joined the board of iimia * iimia will continue to seek acquisitions and investment opportunities to enhance growth prospects of the Group Michael Phillips, Chief Executive, iimia Investment Group plc, says:"The acquisition of Intelli adds a new revenue stream to iimia's existingbusiness, with the advantage that Intelli's presence in the financialcommunity, especially the closed-end investment funds sector, will complementiimia's involvement in fund management and administration."Gordon Neilly, Chief Executive, Intelli, says:"We are delighted to be joining forces with iimia. We have worked closely withiimia's senior management over the last couple of years and have everyconfidence that the substantial progress which they have achieved throughouttheir relatively short history will continue.Whilst Intelli will benefit from the greater resources and infra-structure ofiimia, its ability to provide high quality independent advice to clients willremain undiminished. Importantly Intelli's services to clients will be enhancedthrough the provision of corporate broking services." iimia Investment Group plc ("iimia" or "the Company") Proposed acquisition of Intelli Partners Limited ("IPL") IntroductionThe Directors of iimia are pleased to announce that it has today acquired theentire issued share capital of Intelli Partners Limited (the "Acquisition").Intelli Partners Limited is the holding company of Intelli Corporate FinanceLimited ("Intelli"), a corporate finance advisory company specialising in theclosed-end fund and investment management sectors and located in London andEdinburgh.The consideration for the Acquisition is the issue of 3,750,000 new OrdinaryShares valuing IPL at approximately ‚£5.3 million at the current price of 142pence per share. Of this total 3,720,646 new iimia shares have been issuedtoday and the balance of 29,354 new iimia shares will be issued in the nearfuture. IPL shareholders will own 24.32% of iimia's enlarged share capitalfollowing the issue of such shares.Background to and reasons for the Acquisitioniimia's stated strategy is to build a high quality financial services businessin its chosen area of expertise within the closed and open-ended fund sectorsand to diversify its activities.Since the Company's merger with Exeter Investment Group plc ("EIG") in August2004, the management team has been focussed on integrating iimia and EIG.Having made significant progress in this respect, the Board is now pursuing itsstated ambitions with the acquisition of Intelli.Intelli acted as adviser to iimia in the merger with EIG. Through thatrelationship the Directors formed the view that the acquisition of Intelliwould enable iimia to acquire a new income stream whilst developing its profilein an area of the financial services market which is complementary to iimia'sexisting activities.The Directors believe that Intelli's presence in the London and Edinburghfinancial communities will create opportunities for other parts of the iimiaGroup. The new business complements the existing services of iimia and will bedeveloped further through the introduction of a corporate broking service.The corporate finance business of Intelli will continue to operate under itscurrent name and from its existing premises in London and Edinburgh.iimia will continue to look for both acquisitions and investment opportunitiesin order to improve the growth prospects of the Group. The acquisition ofIntelli is part of this strategy.Information on IntelliIntelli Corporate Finance Limited is a corporate finance advisory firm,authorised and regulated by FSA. The team comprises individuals with extensivecorporate finance experience from a variety of professional backgrounds,including broking, investment banking, fund management, accountancy and law.Intelli currently employs 16 people.Intelli, whose business is ideas and relationship driven, applies both marketand execution skills to initiate transactions and to respond to client needs.The firm acts as a sponsor on London Stock Exchange transactions. Intelliprovides corporate finance advice and primary market services to clients in theinvestment management and closed-ended funds sectors.Intelli also provides consultancy advice to investment trust boards andinvestment management groups. Since the formation of Intelli in 1999, the firmhas advised on over 60 completed transactions including flotations, demergers,reconstructions and merger and acquisition assignments.In the year to 30 April 2005 Intelli made a pre tax loss of ‚£344,000 on aturnover of ‚£2.5 million. Net assets as at 30 April 2005 were ‚£1.7 million.The audited results for the year ended 30 April 2005 were adversely affected bya delay in completion of certain significant transactions. In the four monthsto 31 August 2005, Intelli has generated revenues of ‚£2.3 million. Intelli'scurrent trading from advisory work is strong and a return to profitability inthe current year and beyond is anticipated.As part of the integration process the cost base of Intelli will be reduced dueto expense synergies. These cost savings, when viewed in conjunction with thecurrent pipeline of transactions, should result in the Acquisition beingearnings enhancing for the Group in the first full financial year of ownership.As at 31 August 2005 the net assets of Intelli were in the order of ‚£2.0million and mainly comprise cash.Further terms of the AcquisitionThe Company has today acquired Intelli pursuant to the terms of the AcquisitionAgreement. Under the terms of the agreement the vendors have undertaken to holdthe new ordinary shares for a minimum period of 12 months from the date ofcompletion of the Acquisition and that, for a further one year period followingthe expiry of such first year, they will not dispose of any of the new ordinaryshares without first having given the Company's brokers five business days'notice of the intention to dispose of such shares and offering the shares tothe brokers for sale on best execution terms for the said period of fivebusiness days.The agreement also contains warranties and indemnities appropriate for atransaction of this nature and provides for the appointment of Gordon Neilly,Chief Executive of Intelli, to the Board of iimia.iimia Investment Group PLC29 September 2005Enquiries:iimia Michael Phillips Chief Executive 07973 141998 William Long Chairman 01392 475951 Intelli Gordon Neilly Chief Executive 07785 111115 Colin Rutherford Chairman 07768 053054 Broadgate Roland Cross 020 7726 6111 Arbuthnot Securities Graham Swindells 0207 012 2127 Tom Griffiths 0207 012 2129 This announcement, for which the Directors of iimia Investment Group plc areresponsible, has been issued by iimia Investment Group plc. ENDIIMIA INVESTMENT GROUP PLC