Schroders offers 424m pounds for Cazenove Capital

Schroders has reached agreement on a recommended 135p-a-share offer for Cazenove Capital that values the investment business at 424m pounds.

Schroders has reached agreement on a recommended 135p-a-share offer for Cazenove Capital that values the investment business at 424m pounds.

The FTSE 100-listed asset management group, which confirmed rumours of a possible cash offer on Friday, said that the move reflects its strategy of "growing our Private Banking business and, in addition, it strengthens our position in UK Intermediary", the group said on Monday morning.

David Mayhew, the Chairman of Cazenove Capital, said that the board unanimously recommends the transaction, which "brings together two long-standing organisations with close cultural values". He said that the deal was a "strategic fit" and on "attractive financial terms".

When including Cazenove's £17.2bn of assets under management (AuM), Schroders' pro-forma AuM would have stood at £22.92bn at December 31st 2012.

Schroders said that the acquisition will provide economies of scale, mainly in UK funds distribution and infrastructure, that will see £12-15m of pre-tax cost synergies ever year. It will be earnings enhancing after amortisation of intangible assets in the first full financial year.

"Cazenove Capital's culture of client focus and investment excellence are a strong fit with Schroders," said Schroders Chief Executive Michael Dobson.

"This transaction creates a leading, independent Private Banking and Wealth Management business in the UK, and brings additional investment talent in complementary strategies across UK and European equities, multi-manager and fixed income to Asset Management. I am confident the transaction will create long-term value and benefits for clients, shareholders and employees."

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Rightmove: UK house prices up £3,000 as property market rebounds
House prices

Rightmove: UK house prices up £3,000 as property market rebounds

Rightmove’s latest house price index shows the property market has been resilient despite an economic downturn
20 Mar 2023
Can I avoid IHT by stuffing all my money into a pension?
Personal finance

Can I avoid IHT by stuffing all my money into a pension?

The ditching of the lifetime allowance could enable millions of pension savers to avoid inheritance tax. We explain how.
20 Mar 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023