European Wealth Group Limited PROPOSED ACQUISITION OF CERTAIN ASSETS OF TOWRY AM (9460L)
October 07 2016 - 1:00AM
UK Regulatory
TIDMEWG TIDMEWGL
RNS Number : 9460L
European Wealth Group Limited
07 October 2016
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN, IS NOT
FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY,
IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA,
CANADA, JAPAN, OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER
JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO.
FURTHER, THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND
SHALL NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE SOLICITATION
OF AN OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE ANY NEW
COMMON SHARES OF EUROPEAN WEALTH GROUP LIMITED IN ANY JURISDICTION
IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.
7 October 2016
European Wealth Group Limited
("European Wealth", or "the Group" or "the Company")
PROPOSED ACQUISITION OF CERTAIN ASSETS of Towry Asset Management
Limited
European Wealth (AIM: EWG, EWGL), the integrated financial
planning and wealth management group, is delighted to announce that
it has agreed to acquire certain assets of Towry Asset Management
Limited for a maximum consideration of GBP1.0 million (the
"Acquisition").
Acquisition
European Wealth has entered into a binding Business Sale
Agreement (the "BSA"), with Towry Asset Management Limited (the
"Seller") to purchase a book of business and certain related assets
(the "Transferring Assets") for a total maximum consideration of
GBP1.0 million.
The assets under management ("AuM") attributable to the
Transferring Assets were approximately GBP120 million as at 31
March 2016. For the full year to 31 March 2016, profit attributable
to the Transferring Assets was approximately GBP0.2 million.
The aggregate maximum consideration for the Acquisition is
GBP1.0 million (the "Consideration"). In addition to the
Consideration, the Group has agreed to pay the Seller an additional
GBP200,000 (the "Loan Amount") for the benefit of a loan owing to
the Seller by a consultant who is transferring to the Company. The
loan will be set off against any bonus due to the consultant for
the 12 month period ending on 30 September 2017 and if the bonus is
less than GBP200,000, the remaining amount of the loan will be
waived.
The first instalment of the Consideration of GBP150,000 is
payable in cash six months after completion and the second
instalment of the consideration of GBP400,000 is payable twelve
months after completion (the "Initial Consideration"); and the
final instalment, up to a maximum of GBP450,000, is payable in cash
depending on the AuM attributing of the Transferring Assets. The
final instalment will be paid no earlier than 18 months after (but
including) the date of completion.
The clients of the Transferring Assets, who are principally
based in South Africa and the UK and will be managed out of the
Group's Head Office in London. The acquisition will further broaden
the range of private and corporate clients that deal with European
Wealth. Additionally, the Group intends to build upon the client
base of the Transferring Assets to extend the international reach
of the Group which started in November 2014 with the acquisition of
P&C Global Wealth Managers SA in Switzerland.
Share subscription
In order to satisfy the Loan Amount, the Company intends to
raise up to GBP300,000 through a direct share subscription by
investors to the Company for up to 600,000 new Ordinary Shares at a
price of 50 pence per Ordinary Share.
John Morton, Group Chief Executive of European Wealth said:
"This acquisition further strengthens the Group's ability to offer
integrated investment management and financial planning services
across the UK and internationally. The addition of this book of
business will be enhanced by our ability to offer direct
international equity investment to our clients."
For further details, please contact:
European Wealth Group Limited Tel: +44 (0)20
John Morton 7293 0733
www.europeanwealth.com
Panmure Gordon (UK) Limited (Nomad Tel: +44 (0)20
and Broker) 7886 2500
Andrew Potts / Alina Vaskina
(Corporate Finance)
Erik Anderson (Corporate Broking)
Newgate Communications Tel: +44 (0) 20
Alistair Kellie / Adam Lloyd 7680 6550
/ Ed Treadwell
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation. In
addition, market soundings (as defined in MAR) were taken in
respect of the Placing with the result that certain persons became
aware of inside information (as defined in MAR), as permitted by
MAR. This inside information is set out in this Announcement.
Therefore, those persons that received inside information in a
market sounding are no longer in possession of such inside
information relating to the Company and its securities.
Notes to Editors
European Wealth
European Wealth Group Limited (AIM: EWG, EWGL) is the holding
company for the integrated financial planning and investment
management group, European Wealth Management Group Limited.
European Wealth has two operating divisions, European Investment
Management Limited ("EIM") and European Financial Planning Limited
("EFP") with circa GBP1.4 billion of AUM under influence and over
80 staff. Both are regulated by the Financial Conduct
Authority.
The Group's head office is in London with a network of offices
in the UK and internationally. Core services offered by the Group
are financial planning, corporate pension advisory and investment
management in both equity and fixed interest instruments.
For further information on European Wealth's financial planning
and wealth management services, please go to
www.europeanwealth.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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