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".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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."
-
BoE: Millions of mortgage borrowers will be hit with higher repayments next year
News Higher interest rates are yet to fully hit households and monthly mortgage repayments will rise between £200 and £1,000 – how much will your home loan go up by?
By Marc Shoffman Published
-
Halifax: House prices rise for the second consecutive month
UK house prices rose again in November, suggesting a resilient property market amid economic turmoil in the past year- are we heading for a crash?
By Vaishali Varu Published