European Wealth Group Limited Acquisition & Issue of Equity (6161J)
13 September 2016 - 4:00PM
UK Regulatory
TIDMEWG TIDMEWGL
RNS Number : 6161J
European Wealth Group Limited
13 September 2016
13 September 2016
European Wealth Group Limited
("European Wealth", or "the Company", or the "Group")
Acquisition & Issue of Equity
The directors of European Wealth (AIM: EWG, EWGL), the growing
wealth management group, are pleased to announce the acquisition of
CIMCO Partners Management Limited, ("CPML") which manages the G20
Absolute Return fund which is based in Gibraltar for a maximum
consideration of GBP750,000 ("the Acquisition").
Acquisition
CPML currently has approximately $22 million of funds under
management. The Acquisition adds a third fund to European Wealth's
in-house range and by offering an investment style that is not
currently offered within the Group's portfolio it broadens the
range of equity investment styles available ahead of the launch of
an institutional equity service planned for later in the year.
European Wealth has entered into a binding Share Purchase
Agreement ("SPA") with Michael Mechas (the "Vendor") to purchase
CPML for a total maximum consideration of GBP750,000. The initial
consideration of GBP500,000 is payable immediately on completion
and will be satisfied by the issue of 909,091 of new ordinary
shares of 5 pence each at a price of 55p ("Ordinary Shares") (the
"Initial Consideration Shares"). There is, depending on the gross
profitability of CPML, further deferred consideration which may
become payable approximately 12 months after completion of up to a
maximum of GBP250,000, also to be satisfied by the issue of further
new Ordinary Shares.
Share subscription
The Vendor of CPML, Michael Mechas, will be joining European
Wealth as a result of the Acquisition and will continue in his
position as lead investment director of the G20 Absolute Return
fund. He will join European Wealth's investment committee and,
pursuant to the terms of a consultancy agreement between Michael
and European Wealth Group Limited, will work with the executive
team to identify international acquisitions, reporting to the Group
Chief Executive (as Head of International Corporate Development,
Europe and Americas). Michael is also subscribing directly in new
ordinary shares in the Company for 454,545 new Ordinary Shares at a
price of 55 pence per Ordinary Share (the "Subscription
Shares").
Application has been made for the Initial Consideration Shares
and Subscription Shares, together a total of 1,363,636 new Ordinary
Shares, to be admitted to trading on AIM. It is expected that the
dealings in these new Ordinary Shares will commence on AIM on or
around 19 September 2016 ("Admission").
Following Admission, the Company will have in issue 24,810,481
Ordinary Shares ("Enlarged Issued Share Capital"). The Company does
not hold any Ordinary Shares in treasury. Therefore, the total
number of Ordinary Shares with voting rights in the Company will be
24,810,481.
Also, following Admission, Michael Mechas will hold 1,363,636
Ordinary Shares representing approximately 5.5 per cent. of the
Company's Enlarged Issued Share Capital.
John Morton, Group Chief Executive, commented "I am delighted to
announce the acquisition which further strengthens our position as
a broad based and established wealth manager and look forward to
Michael joining the investment team and supporting the growth of
the Company."
Michael Mechas, MD of CPML commented "I am pleased to be joining
a forward looking and expanding wealth management business that has
a focus on investment performance."
Enquiries
For further information, please contact:
European Wealth
John Morton, Group Chief Executive 020 7293 0733
www.europeanwealth.com
Panmure Gordon
Fred Walsh / Alina Vaskina 020 7886 2500
Newgate Communications
Alistair Kellie / Adam Lloyd
/ Ed Treadwell 020 7680 6550
Notes to Editors
European Wealth
European Wealth Group Limited (AIM: EWG, EWGL) is the holding
company for the growing wealth management business, European Wealth
Management Group Limited. Having commenced trading in 2010,
European Wealth has two operating divisions, European Investment
Management Limited ("EIM") and European Financial Planning Limited
("EFP") with circa GBP1.4 billion of AUM under influence and over
80 staff. Both are regulated by the FCA and were established to be
RDR compliant from the outset, EIM opting for Restricted Adviser
status and EFP for Independent Adviser status. Today the Group's
head office is in London with an expanding network of offices both
in the UK and continental Europe. Core services offered by the
Group are financial planning, corporate pension advisory and
investment management in both equity and fixed interest
instruments. For further information on European Wealth's wealth
management and financial planning services, please go to
www.europeanwealth.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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