City of London Group has acquired financial advice firm Acorn to Oaks Financial Services for an initial consideration of £1.4m.
Following an initial announcement of its plans in July, the group announced the acquisition completion today (January 8) and detailed the terms of payment to current shareholders in the West Midlands advice firm.
Acorn to Oaks’ founders, Jason Oakley and Claire Oakley, owned 92 per cent of the advice firm’s shares and will receive zero-coupon loan notes that can be converted into new shares in City of London.
The notes can be converted following the preparation of the annual accounts for the financial year ending March 31, 2021.
Payment to other Acorn to Oak shareholders will take the form of new shares in City of London, which issued 82,068 new ordinary shares of 2p each following the acquisition.
An application will be made to the London Stock Exchange for the new ordinary shares to be admitted to trading on Alternative Investment Market (AIM) , anticipated to occur on January 14.
City of London Group describes itself as focused on serving the UK SME market, covering finance for the sector, equity release and secured lending.
Acorn to Oaks has permissions to advise on mortgages, pensions and investments, as well as pension transfers.