In a stock exchange announcemnent it has been confirmed that Towry will pay Ashcourt Rowan shareholders £2.70 in cash for each share plus 5 pence as a principal amount of loan notes.
It was also confirmed that court and shareholder meetings about the deal are set to take place in mid-March.
It was earlier this month that Towry agreed to buy wealth management firm Ashcourt Rowan for £97m. At the time of the announcement, Ashcourt’s shares jumped by almost 54 per cent to 259.16p.
At the time of writing, Ashcourt’s shares are priced at 264.4p, 0.79 per cent down on Friday’s close but 36.99 per cent up over the year.
The two companies claimed that combined they will be one of the top 20 players in the UK private wealth market by assets under management.
Once the merger is complete, the new company is expected to have £11bn of assets under management and revenues of £138m.
Speaking at the time the deal was announced, Ron Sandler, chairman of Towry, said: “Our highly complementary business models will deliver significant client benefits, providing access to a broader range of services and investment solutions.
“Ashcourt Rowan has developed into a high quality business following a period of reorganisation and with a strong cultural fit, the combined entity will be well positioned to take advantage of further growth opportunities as the market continues to evolve.”
Once the deal is complete Towry will conduct a full review to find potential savings, which the company has said will lead to redundancies, but the number is not yet known.
Under the terms of the deal, Ashcourt Rowan chief executive Jonathan Polin, chief financial officer Alfio Tagliabue and head of governance Steve Haines will all leave the company.
All three will receive pay-offs as part of the deal, with Mr Polin allegedly receiving around £4m.
Ashcourt Rowan’s directors have said in a statement that the deal is fair and reasonable and have unanimously recommended that shareholders vote in favour of it.
emma.hughes@ft.com
