Investec to buy majority stake in Irish firm Neontar

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.

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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.

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