The board of River and Mercantile has reached an agreement with AssetCo for an all-share acquisition.
Martin Gilbert’s AssetCo will acquire the investment group River and Mercantile, which was formed in 2014 and has £49 billion assets under management, in an effort to establish a heavyweight asset management business.
The acquisition represents the final step in the strategy to unlock value from the River & Mercantile Group, which commenced with the sale of River & Mercantile Solutions to Schroders for £190 million.
This transaction will deliver total value to River & Mercantile shareholders of £288.8 million.
As part of the deal, River & Mercantile shareholders will own 41.6% of the combined group and the cash from the sale of River & Mercantile Solutions to Schroders will also go to shareholders.
Jonathan Dawson, chairman of River and Mercantile, said: “The board believes that the offer from AssetCo not only represents good value to shareholders but provides our clients and colleagues with a powerful investment platform led by a team with deep experience in the asset management industry. The board encourages our shareholders to support this transaction as the board will be doing in respect of their own holdings.”
Based on a closing price of 1,550p per AssetCo share, the acquisition values each River & Mercantile share at 114.6p, which values the takeover cost at approximately £98.8 million.
AssetCo already owns the asset management firm Saracen Fund Managers, which will be combined with River and Mercantile.
“This transaction secures continuity of the environment and investment culture that has been a critical factor to the success of the business and provides stability and support as the business continues to invest for the future. AssetCo is building an impressive platform with experienced leadership and this acquisition is a key element in their exciting plans” added James Barham, group chief executive officer of River & Mercantile.
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