Investec, the specialist banking group, is to take a majority stake in Neontar, the Irish corporate finance and wealth manager.
Investec will pay around €32.35m for the controlling stake, which is being bought from a group of investors including Quinn Financial Services, and plans to extend the offer to all Neontar shareholders, with a view to securing 100% control.
Neontar owns the NCB Group, a corporate finance and wealth and investment company.
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
Investec says it will pay €4.35m over and above the net asset value of Neontar which is estimated at €28m. There may also be deferred payments to the sellers, dependant on the recovery of certain amounts by NCB. The deal looks likely to be done in cash although Investec says, at "its election", the payment could take the form of shares.
Completion of the deal is expected by the second quarter of 2012.
Investec shares have dropped 22.7% in the last 12 months.
BS
-
Cash in on the growth prospects of Europe's companiesOpinion Marcel Stötzel, co-portfolio manager of the Fidelity European Trust, selects three stocks
-
Is the AI boom another dotcom bubble?25 years on from the dotcom bubble bursting, is it time for investors to consider the sustainability of the AI boom in the stock market?
