Rathbones tops up war-chest

Wealth management outfit Rathbone Brothers is on the acquisition trail, snapping up the UK private client investment management business of Taylor Young Investment Management (TYIM).

Wealth management outfit Rathbone Brothers is on the acquisition trail, snapping up the UK private client investment management business of Taylor Young Investment Management (TYIM).

TYIM's management team will soon be wearing Rathbone colours after the latter agreed to pay up to £10m in cash for the business, although the consideration could rise to £15m by November 2014 depending on the performance of funds currently being managed by TYIM. Rathbones expects the transaction to be earnings neutral in 2013 prior to amortisation, and should start contributing to earnings from 2014 onwards.

As at November 2nd, TYIM had £337m of funds under management (FUM), and Rathbones has calculated that adding those funds to its own pot would increase FUM by 2.0% to £17.69bn.

Andy Pomfret, Chief Executive of Rathbone Brothers, said management expects to see more acquisition opportunities in the private client industry in the next few years, which explains why the company is raising around £24.2m (gross) through a placing of 2m shares. The targeted fund raising amount is equivalent to around 4.3% of Rathbones Brothers' market capitalisation, as at November 6th.

Canaccord Genuity has been appointed as sole book-runner for the placing, which means it will be in charge of haggling with institutional investors over the price of the share placing, which is not being underwritten.

Recommended

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
6 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 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 accord…
2 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

NS&I brings back one-year fixed bonds with highest rates since 2010
Personal finance

NS&I brings back one-year fixed bonds with highest rates since 2010

NS&I’s one-year fixed bonds are back on sale after being pulled off the market in 2019 - but is the rate any good?
1 Feb 2023
How to invest like an ISA millionaire
Investments

How to invest like an ISA millionaire

We reveal the top funds and trusts ISA millionaires pumped their money into
6 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023