Around 93 per cent of Merchant Securities Group’s shareholders have voted in favour of the take-over of the firm by South Africa-based Sanlam Private Investment Holdings, subject to approval from the Financial Services Authority.
On 31 October, SPIH offered to buy the ordinary share capital of Merchant Securities for £12.2m. Following completion of the acquisition agreement the stock broker will be 75 per cent owned by Sanlam UK, while Merchant’s management team will have a 25 per cent stake in their business.
SPIH announced to the stock exchange today (24 November) that the offer has “become unconditional” as to acceptances and will remain open for acceptance until further notice.
As announced by Merchant on 18 November 2011, the conditions of the offer relating to the passing of the ordinary resolution and special resolution “have also been satisfied”.
The offer remains subject to various other conditions including FSA approval of the acquisition of Merchant.
In the event that the offer becomes or is declared unconditional in all respects, SPIH intends to exercise its rights in accordance with sections 974 to 991 of the Companies Act to acquire compulsorily the remaining Merchant Shares on the same terms as the offer.
Daniel Kriel, chief executive of Sanlam Private Investments, previously claimed that the successful completion of this transaction will expand the firm’s existing product and service offering to its South African and UK high net worth client base.
He also claimed it would also enable the firm to provide clients with a global execution service from within the group.
He said: “We searched for some time for the right UK business and identified Merchant Securities as a quality operation that will complement and add value to our team into the future.”