AssetCo PLC Acquisition (6002Y)
May 14 2021 - 2:00AM
UK Regulatory
TIDMASTO
RNS Number : 6002Y
AssetCo PLC
14 May 2021
AssetCo plc
("AssetCo" or the "Company")
Conditional acquisition of Saracen Fund Managers Limited
Following the readmission of the Company to AIM on 16 April
2020, the Company is pleased to announce that it has reached
agreement to acquire the entire issued share capital of Saracen
Fund Managers Limited ("Saracen") (the "Acquisition") for an
effective total consideration of GBP2.75 million (the
"Consideration"). The Consideration will be satisfied by the issue
of 166,904 new ordinary shares of 10p each in the Company, fully
paid (the "Consideration Shares") and GBP664,774 in cash, in each
case to be paid on completion.
The Acquisition is conditional on, inter alia, approval by the
FCA to the change of controller and the admission of the
Consideration Shares to trading on AIM, which is expected to occur
by the end of September 2021. The Company will provide further
updates as appropriate.
About Saracen
Saracen is an independent, FCA regulated, fund management
business based in Edinburgh that was founded in the late 1990s.
Saracen has three funds, operating on the T Bailey Fund Services
Limited platform, called Global Income and Growth Fund
(approximately GBP103 million of Assets under Management (AuM)), UK
Alpha Fund (approximately GBP14 million of AuM), and UK Income Fund
(approximately GBP2 million of AuM). Saracen operates from an
office in Rutland Square, Edinburgh, and has five full time
employees, all of whom will enter new employment contracts on
completion. Saracen generated turnover of GBP985,364 and a loss
after taxation of GBP15,146 for the financial year ended 31 March
2020 and had net assets of GBP400,661, as at 31 March 2020.
Following completion of the Acquisition, Saracen will continue
to operate from Edinburgh under the Saracen brand. Martin Gilbert
and Peter McKellar, Directors of AssetCo, will join the board of
Saracen on completion.
The Board of the Company believes that there exist significant
opportunities to enhance the distribution and appeal of Saracen's
existing funds and to widen the funds offered by Saracen to include
immediate adjacencies. Finally, Saracen offers the Company the
opportunity to acquire a FCA regulated entity and the associated
authorisations, subject to FCA change in controller approval.
Peter McKellar, Deputy Chairman and CEO of AssetCo,
commented:
"Saracen is a small fund management firm with great potential.
Its business model, people and product offering are its key assets
and are an ideal fit for AssetCo. I'm looking forward to working
with Graham and the team. Our focus will be on building on
Saracen's strong foundations, particularly the experience and
expertise of its management team and their investment approach. We
aim to grow the business through marketing its existing funds and
over time broadening its product range to continue to meet the
needs of customers.
"The proposed acquisition is part of AssetCo's overall strategy
of acquiring and investing in asset and wealth management
businesses. The industry is contending with multiple structural
shifts, including demographics, fee compression and a greater focus
on ESG. These are presenting challenges and opportunities for
incumbent firms and we believe we can capitalise on this to help
unlock value and to deliver for clients and investors."
Graham Campbell, Chief Executive Officer of Saracen, said:
"We've known Martin and Peter for some time and are excited
about working with them to help grow Saracen's three existing funds
and to develop the overall business. Importantly the investment
philosophy and team will remain the same. We believe our focus on
active management and fundamental research with a long-term mindset
is well placed to help investors achieve their financial goals. Our
clients are supportive of this approach and we are now focused on
introducing our funds to a wider range of prospective
investors."
Enquiries:
AssetCo plc
Peter McKellar, Deputy Chairman and CEO
James Thorneley, Head of Communications
Tel: +44 (0) 7958 005 141
Arden Partners plc
Nominated adviser and broker
John Llewellyn-Lloyd / Dan Gee-Summons / Nick Wright
Tel: +44 (0) 20 7614 5900
Maitland/AMO
Neil Bennett
Rachel Cohen
Tel: +44 (207) 379 5151
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END
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