CompaniesMar 12 2015

Towry ups Ashcourt Rowan offer to £120m

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Towry ups Ashcourt Rowan offer to £120m

Towry has increased its offer for wealth management firm Ashcourt Rowan by 24 per cent to £120m, the restricted national announced today (12 March).

In February, Towry agreed to buy wealth management firm Ashcourt Rowan for £97m. In a stock exchange announcement following this, Towry said it will pay Ashcourt Rowan shareholders £2.70 in cash for each share plus 5 pence as a principal amount of loan notes.

But amid concerns over whether the deal would receive backing from shareholders, Towry today (12 March) revealed it has upped its offer. Ashcourt Rowan shareholders will now receive £3.33 in cash plus a principal amount of 16p in new loan notes per share.

On the news, Ashcourt Rowan’s shares surged 25 per cent today and, at the time of writing (2pm), stand at 333.5p.

A court meeting for Ashcourt Rowan Shareholders to vote on the transaction has been adjourned to on or around 31 March 2015. The transaction is expected to complete in the second quarter of this year.

Hugh Ward, chairman of Ashcourt Rowan, said: “We are pleased to have agreed a compelling increased predominantly cash offer from Towry at 333p in cash and 16p in loan notes.

“The board recognises the compelling strategic rationale and value of this combination and is confident that the businesses will be able to effect a smooth integration and consolidate the combined entity’s position as a leading player in the UK wealth management industry.

“This move by Towry brings an end to the uncertainty any disruption to the business by the delivery of hard irrevocable undertakings to vote in favour of the deal and therefore an ensured outcome.”

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.

donia.o’loughlin@ft.com