European Wealth has acquired Swiss-based P&C Global Wealth Managers SA and the associated GTI Fund Investment Ltd for an aggregate maximum consideration of £2.76m.
The consideration is split into two tranches. The initial tranche of £1.38m shall be satisfied via the payment of approximately £13,807 in cash and the issue of 1,309,620 new ordinary shares of 5p each in the capital of the company, at an issue price of 104.9p per share.
Up to a further £1.37m will be due in late 2015, dependent on the acquisitions’ funds under management and pipeline as at 13 November 2015. The deferred consideration will be satisfied through the issue of up to 1,309,620 new ordinary shares, also at an issue price of 104.9p per share.
Application has been made for the initial consideration shares to be admitted to trading on the Alternative Investment Market and admission is expected on 19 November.
European Wealth’s board believes that the acquisitions will strengthen the team’s investment expertise, providing a stable offshore base and a credible entry point into the Middle East market should they wish to establish a presence in that market.
P&C was founded over 10 years ago by Iain Little and Bruce Albrecht, to provide a range of high quality financial and related services to international clients. It has approximately £92m of discretionary funds under management.
GTI is a sister company, incorporated in the Cayman Islands, which offers a range of funds advised by P&C.
It is intended that Mr Little will join the board of European Wealth’s subsidiary European Investment Management Limited and that Bruce Albrecht will act as a consultant. A number of European Wealth’s directors will also join the board of P&C.
John Morton, executive chairman of European Wealth, called it an important step forward in the firm’s evolution.
“The board also recognises the opportunities the acquisitions allow for expanding the group’s international presence and servicing funds from established wealth management centres both in Europe and the Middle East.”
European Wealth’s ended the first half of the year with funds under management and influence up 24.2 per cent to £820m, driven by the recruitment of asset managers and growth of its European financial planning business.