TIDMASTO

RNS Number : 9244R

AssetCo PLC

06 March 2023

6 March 2023

LEI: 213800LFMHKVNTZ7GV45

For Immediate Release

AssetCo plc

("AssetCo" or the "Company")

Conditional acquisition of Ocean Dial Asset Management Limited by AssetCo

AssetCo (AIM: ASTO), the agile asset and wealth management company, is pleased to announce that it has reached agreement to acquire the entire issued share capital of Ocean Dial Asset Management Limited (the "Acquisition") from Avendus Capital Asset Management (UK) Limited for a total consideration of GBP4.125 million (the "Consideration").

The Consideration will be satisfied by the delivery of 2,928,258 ordinary shares of GBP0,01 each in the capital of the Company ("Ordinary Shares") and GBP2.125 million in cash of which 732,065 Ordinary Shares and GBP500,000 shall be deferred until after the calendar year end in accordance with the provisions of the Sale and Purchase Agreement. The Ordinary Shares that form part of the consideration will be transferred out of treasury post completion.

The Acquisition is conditional on, inter alia, approval by the FCA to a change in controller which is expected to occur by the end of Q2 2023 and the Reserve Bank of India and Securities Exchange Board of India which is expected to run into Q3 2023. The Company will provide further updates, as appropriate.

About Ocean Dial Asset Management

Ocean Dial was established in 2005 and is wholly owned by Avendus Capital Asset Management (UK) Limited. Ocean Dial's current business is the management of the assets of the India Capital Growth Fund Limited, which, as at 28 February 2023, had a net asset value in excess of GBP127m and an annualised run rate revenue of GBP1.4m. The Acquisition is expected to be earnings enhancing for the Group and it is anticipated that further synergies will be achievable following completion. Ocean Dial will have net assets as at completion of not less than GBP250,000 or such other sum as may be required in order to meet its regulatory capital requirements. The fund has been successfully advised for several years by Guarav Narain and team, based in India.

Martin Gilbert, Chairman of AssetCo, commented:

" We are delighted to welcome India Capital Growth Fund as a client of our Group and look forward to working with the Fund's current management to provide the Fund's Board with a first class service. AssetCo's mission is to acquire, improve and grow asset management businesses with potential. We are excited about the long-term potential that India offers and see opportunities to add value by bringing Ocean Dial together with the other active equity asset management businesses we are combining under the River and Mercantile brand."

   Gaurav Deepak, Co-Founder and CEO of Avendus Capital   (India)   added:

"Avendus is delighted to have concluded an arrangement with AssetCo, a UK AIM-listed company, for the sale of our ODAM business. This sale will benefit all the stakeholders of ODAM and allow us to participate in AssetCo's on-going success as a shareholder. We look forward to working with Martin and his team to complete the transaction and to a long and fruitful future relationship."

For further information, please contact:

 
 AssetCo plc                        Numis Securities Limited 
  Campbell Fleming, CEO              Nominated adviser and joint 
  Peter McKellar, Deputy Chairman    broker 
  Tel: +44 (0) 785 0464 301          Giles Rolls / Charles Farquhar 
                                     Tel: +44 (0) 20 7260 1000 
 
 Panmure Gordon (UK) Limited        H/Advisors Maitland 
  Joint broker                       Neil Bennett 
  Atholl Tweedie                     Rachel Cohen 
  Tel: +44 (0) 20 7886 2500          Tel: +44 (0) 20 7379 55151

For further details, visit the website, www.assetco.com

Ticker: AIM: ASTO.L

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END

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March 06, 2023 02:00 ET (07:00 GMT)

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