CompaniesApr 17 2014

European Wealth to list following ‘reverse acquisition’

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by

National wealth manager and financial planning firm European Wealth Management Group has listed through a ‘reverse acquisition’ involving a consolidation vehicle that previously controlled a stake of just less than half.

EW Group, which was founded in 2004 as a pre-listing consolidation vehicle and switched its strategy to focus on financial services in 2012, has acquired the outstanding shares of EWMG for £7.1m through issuance of its own shares.

Like a typical ‘reverse takeover’, the transaction effectively means EWMG becomes listed without having to go through a lengthy initial public offering.

EW Group, which is listed on the London Stock Exchange’s Alternative Investment Market, previously owned 48.8 per cent of EWMG as at March 2013. Based on the ‘theoretical post consolidation price’, the acquisition values the firm at approximately £13.45m.

Since the original EW Group investment in April 2012, EWMG has grown its aggregated funds under management from around £150m to over £710m. Growth has been largely acquisitive and the company now has offices in London, Brighton, Cheltenham, Worcester, Wokingham and East Malling.

European Wealth’s client base currently ranges from individuals with up to £7m of assets to invest to institutions investing up to £68m.

It said the listing will allow it to raise money to make further acquisitions and it has already identified “a number of potential acquisition targets and intends to pursue further growth opportunities”.

Paul Everitt, executive director of EW Group, said: “We believe that significant opportunities for growth, both organic and acquisitive, exist within the wealth management industry however the current arrangement... does not provide an efficient structure through which to raise growth capital.

“The directors’ opinion is that for EWMG to fully exploit the opportunities for growth, both organically and by acquisition, within the wealth management industry then the ownership of EWG and EWMG need to be consolidated.”