AssetCo PLC Sale of Interest in RMI LLP (8989O)
October 06 2023 - 2:00AM
UK Regulatory
TIDMASTO
RNS Number : 8989O
AssetCo PLC
06 October 2023
6 October 2023
LEI: 213800LFMHKVNTZ7GV45
For Immediate Release
AssetCo plc
("AssetCo" or the "Company")
Sale of Interest in River & Mercantile Infrastructure LLP
("RMI")
Sale of Interest in RMI
AssetCo and its wholly owned subsidiary, River & Mercantile
Holdings Limited ("Holdings") are pleased to announce that they
have reached agreement in principle for the transfer of their
interest as corporate partner in RMI, to partners of RMI led by Ian
Berry, managing partner of RMI (the "Sale").
Partners of RMI have agreed terms with AssetCo and Holdings to
continue managing and operating RMI outside the AssetCo Group. It
is anticipated that the transaction(s) to effect this change will
be completed, subject to agreeing final contractual documentation,
in Q4 2023.
About RMI
RMI's primary activity is as investment adviser to the River and
Mercantile Infrastructure Income Fund ("the Fund") which was
launched and made its first investments in 2022. After careful
consideration, each of AssetCo, Holdings, and partners of RMI have
concluded that the prospects for the Fund and the business would be
optimised by RMI operating outside AssetCo.
Management fee revenues for the year ending 30 September 2023
earned by RMI on behalf of the Group are estimated at GBP0.53m with
a loss for the year estimated at GBP0.75m before non-recurring
items. AssetCo made a provision of GBP1.7m in its Interim Results
published in June 2023 against assets held on the balance sheet
relating to RMI, which compares to gross balance sheet assets which
currently stand at an estimated GBP2.5m (GBP0.5m net).
Consideration for the transaction is the nominal figure of GBP1 but
release from certain previous obligations will result in a write
back of GBP0.7m.
Martin Gilbert, Executive Chair of AssetCo said:
"We are pleased to have reached agreement with Ian and his team
for them to take the business of RMI out of the AssetCo Group. This
will allow that team to re-shape the RMI business to focus on
delivering the best outcome for the Fund's clients while leaving
AssetCo to focus on building its active equities business. In doing
so, we are looking to capitalise on the recent acquisition of Ocean
Dial Asset Management and bringing this together with our other
active equities businesses under the River & Mercantile banner.
In that context, the operations of our three legacy Scottish
businesses have now been fully amalgamated into a single unit
pending further integration with River & Mercantile in London
before calendar year end.
This move, following quite swiftly on the heels of our disposal
of Rize ETF Limited, delivers a much-simplified Group which is
better able to withstand the significant headwinds that persist in
global markets for asset management services. Our narrower focus,
together with the financial support of our valuable stake in the
business of Parmenion, gives us renewed confidence for the
future."
For further information, please contact:
AssetCo plc Numis Securities Limited
Gary Marshall, CFOO Nominated adviser and joint broker
Peter McKellar, Deputy Chairman Giles Rolls / Charles Farquhar
Tel: +44 (0) 7788 338157 Tel: +44 (0) 20 7260 1000
Panmure Gordon (UK) Limited H/Advisors Maitland
Joint broker Neil Bennett
Atholl Tweedie Rachel Cohen
Tel: +44 (0) 20 7886 2906 Tel: +44 (0) 20 7379 5151
For further details, visit the website, www.assetco.com
Ticker: AIM: ASTO.L
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