Last checked at 7 Oct 2016 07:00
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN, IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO.
FURTHER, THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE ANY NEW COMMON SHARES OF EUROPEAN WEALTH GROUP LIMITED IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.
7 October 2016
European Wealth Group Limited
("European Wealth", or "the Group" or "the Company")
PROPOSED ACQUISITION OF CERTAIN ASSETS of Towry Asset Management Limited
European Wealth (AIM: EWG, EWGL), the integrated financial planning and wealth management group, is delighted to announce that it has agreed to acquire certain assets of Towry Asset Management Limited for a maximum consideration of £1.0 million (the "Acquisition").
Acquisition
European Wealth has entered into a binding Business Sale Agreement (the "BSA"), with Towry Asset Management Limited (the "Seller") to purchase a book of business and certain related assets (the "Transferring Assets") for a total maximum consideration of £1.0 million.
The assets under management ("AuM") attributable to the Transferring Assets were approximately £120 million as at 31 March 2016. For the full year to 31 March 2016, profit attributable to the Transferring Assets was approximately £0.2 million.
The aggregate maximum consideration for the Acquisition is £1.0 million (the "Consideration"). In addition to the Consideration, the Group has agreed to pay the Seller an additional £200,000 (the "Loan Amount") for the benefit of a loan owing to the Seller by a consultant who is transferring to the Company. The loan will be set off against any bonus due to the consultant for the 12 month period ending on 30 September 2017 and if the bonus is less than £200,000, the remaining amount of the loan will be waived.
The first instalment of the Consideration of £150,000 is payable in cash six months after completion and the second instalment of the consideration of £400,000 is payable twelve months after completion (the "Initial Consideration"); and the final instalment, up to a maximum of £450,000, is payable in cash depending on the AuM attributing of the Transferring Assets. The final instalment will be paid no earlier than 18 months after (but including) the date of completion.
The clients of the Transferring Assets, who are principally based in South Africa and the UK and will be managed out of the Group's Head Office in London. The acquisition will further broaden the range of private and corporate clients that deal with European Wealth. Additionally, the Group intends to build upon the client base of the Transferring Assets to extend the international reach of the Group which started in November 2014 with the acquisition of P&C Global Wealth Managers SA in Switzerland.
Share subscription
In order to satisfy the Loan Amount, the Company intends to raise up to £300,000 through a direct share subscription by investors to the Company for up to 600,000 new Ordinary Shares at a price of 50 pence per Ordinary Share.
John Morton, Group Chief Executive of European Wealth said: "This acquisition further strengthens the Group's ability to offer integrated investment management and financial planning services across the UK and internationally. The addition of this book of business will be enhanced by our ability to offer direct international equity investment to our clients."
For further details, please contact:
European Wealth Group Limited John Morton
| Tel: +44 (0)20 7293 0733 www.europeanwealth.com |
Panmure Gordon (UK) Limited (Nomad and Broker) Andrew Potts / Alina Vaskina (Corporate Finance) Erik Anderson (Corporate Broking)
| Tel: +44 (0)20 7886 2500 |
Newgate Communications Alistair Kellie / Adam Lloyd / Ed Treadwell
| Tel: +44 (0) 20 7680 6550 |
Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation. In addition, market soundings (as defined in MAR) were taken in respect of the Placing with the result that certain persons became aware of inside information (as defined in MAR), as permitted by MAR. This inside information is set out in this Announcement. Therefore, those persons that received inside information in a market sounding are no longer in possession of such inside information relating to the Company and its securities.
Notes to Editors
European Wealth
European Wealth Group Limited (AIM: EWG, EWGL) is the holding company for the integrated financial planning and investment management group, European Wealth Management Group Limited. European Wealth has two operating divisions, European Investment Management Limited ("EIM") and European Financial Planning Limited ("EFP") with circa £1.4 billion of AUM under influence and over 80 staff. Both are regulated by the Financial Conduct Authority.
The Group's head office is in London with a network of offices in the UK and internationally. Core services offered by the Group are financial planning, corporate pension advisory and investment management in both equity and fixed interest instruments.
For further information on European Wealth's financial planning and wealth management services, please go to www.europeanwealth.com.