TIDMASTO

RNS Number : 8224E

AssetCo PLC

01 November 2022

1 November 2022

LEI: 213800LFMHKVNTZ7GV45

AssetCo plc

("AssetCo" or the "Company")

Completion of acquisition of SVM Asset Management Holdings Limited

On 21 June 2022 AssetCo, the agile asset and wealth management company, announced that it had reached agreement to acquire the entire issued share capital of SVM Asset Management Holdings Limited, the holding company of SVM Asset Management Limited (together "SVM"), (the "Acquisition").

The Acquisition was conditional on, inter alia, approval by the FCA to the change of controller of SVM. AssetCo is pleased to announce that this approval has been forthcoming and all the conditions pertaining to the Acquisition have been satisfied. Completion of the Acquisition took place earlier today.

The consideration payable under the terms of the Acquisition was, after balance sheet adjustments, GBP11.2 million satisfied by the issue of GBP9 million nominal of 1% fixed rate unsecured convertible loan notes 2023 in AssetCo (the "Loan Notes") and, as a result of higher net assets of SVM on completion of GBP4.5 million, approximately GBP2.2 million in cash. On completion SVM had cash balances of GBP5 million. The Loan Notes may be converted into fully paid ordinary shares of 1p each in the Company ("Ordinary Shares") in certain circumstances. Up to GBP2 million in nominal value may be converted on or before 31 December 2022 at the market price at the time of conversion. Thereafter conversion will be at an effective price of GBP1.45 per Ordinary Share. Unless converted the Loan Notes will be repaid on 31 December 2023.

SVM is a key component of AssetCo's plans to have a strong and dynamic asset management hub in Edinburgh. Completion of the Acquisition brings assets managed by the AssetCo group of companies in the Scottish capital to nearly GBP700 million. The intention is that, over time and subject to appropriate regulatory approvals and client consents, the majority of compliance, operational, distribution and marketing resources will be shared within the broader AssetCo group of companies. At the same time, the unique qualities and strengths for which SVM are well known will be preserved to form a bedrock of growth for the future.

Martin Gilbert, Chairman of AssetCo, commented:

"The completion of the acquisition of SVM is part of AssetCo's overall strategy of investing in, building and managing asset and wealth management businesses.

We are proud to be building an asset management hub of investment excellence in Edinburgh and the completion of the SVM acquisition is integral to this. SVM is a very well regarded fund management firm with a strong heritage and investment track record. We are looking forward to building upon SVM's many strengths as we continue to develop a listed equity business at AssetCo to meet the long-term financial needs of investors."

Colin McLean, the founder of SVM commented:

"Speaking for myself and the whole team at SVM we are immensely proud of what we have achieved over the past 32 years. We could not have done so without the unstinting support of our clients, many of whom have been with us since the early days. We look forward to working with AssetCo to build an expanded and dynamic equities platform to serve all of our clients and leverage opportunities for the future."

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          Maitland/AMO 
   Joint broker                         Neil Bennett 
   Charles Leigh-Pemberton / Atholl     Rachel Cohen 
   Tweedie                              Tel: +44 (0) 20 7379 55151 
   Tel: +44 (0) 20 7886 2906

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

Ticker: AIM: ASTO.L

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