Shore Capital Group Limited Acquisition of Stockdale Securities Limited (8656P)
13 February 2019 - 6:00PM
UK Regulatory
TIDMSGR
RNS Number : 8656P
Shore Capital Group Limited
13 February 2019
Shore Capital Group Limited
("Shore Capital" or the "Company")
Acquisition of Stockdale Securities Limited
Shore Capital, the independent investment group, is pleased to
announce that its Capital Markets Division, Shore Capital Markets
Limited, has agreed the acquisition of the entire issued share
capital of Stockdale Securities Limited ("Stockdale") (the
"Acquisition") for an initial consideration of GBP4.9 million
("Initial Consideration") and a maximum deferred consideration of
up to GBP4.0 million ("Deferred Consideration").
Stockdale serves an institutional and corporate client base
offering corporate advisory and corporate broking, equity research,
sales and trading services to institutional investors, with a focus
on small and mid-cap companies and listed investment funds.
Stockdale's corporate broking and advisory team acts for 53
corporate clients and it has dealing relationships with
approximately 200 institutions. In 2017, Stockdale won the AIM
award for Best Research, the last time this prize was
announced.
Since January 2016 the business has been involved in over 70
transactions with a total value of GBP3.9 billion. In its most
recent published accounts for the year to 30 September 2018,
Stockdale reported income of GBP11.4 million and profit before tax
of GBP1.5 million, with net assets as at 30 September 2018 of
GBP5.7 million. The business employs 41 people.
Stockdale is authorised and regulated by the Financial Conduct
Authority ("FCA") and completion of the Acquisition is conditional
upon FCA consent to the proposed change of control
("Completion").
The Initial Consideration is being satisfied in cash from the
Company's existing reserves and adjusted by reference to
Stockdale's net asset position at Completion. At the end of the
18-month period following Completion, the Deferred Consideration
will be satisfied in cash based on the achievement of certain
revenue targets.
The Company believes that the Acquisition represents a
compelling strategic fit and that the combination will enhance the
existing operations of Shore Capital Markets by expanding the
corporate client base, adding a specialist investment funds
capability to the business and by augmenting the existing corporate
advisory and broking, research, sales and trading expertise. Shore
Capital Markets is already the third largest market-maker on AIM.
The Acquisition is expected to create London's fourth largest
corporate broking and advisory business by number of retained
Main-Market and AIM quoted businesses.
Commenting on the Acquisition, Simon Fine, Co-Chief Executive of
Shore Capital, said:
"We are delighted to welcome the Stockdale team to Shore
Capital. The combination of our complementary businesses adds
scale, expertise and diversity to Shore Capital, demonstrating our
commitment to serving the needs of our combined institutional and
corporate clients."
Mark Brown, Chairman of Stockdale said:
"Shore Capital and Stockdale share a like-minded, commercial
approach which we believe will be an excellent fit, with the scale
of the combined business enabling it to grow and benefit from the
opportunities that lie ahead."
The information contained within this announcement is deemed to
constitute inside information under the Market Abuse Regulations
(EU) No. 596/2014.
- Ends -
Enquiries:
Shore Capital
Simon Fine, Co-Chief Executive +44 (0)20 7408
David Kaye, Co-Chief Executive 4090
Grant Thornton UK LLP (Nominated
Adviser) +44 (0)20 7383
Philip Secrett 5100
About Shore Capital
Shore Capital is an AIM quoted independent investment group.
Founded and majority owned by entrepreneurs, for three decades
Shore Capital has been helping entrepreneurial businesses reach
their full potential, find committed long-term investors and
develop into significant enterprises. The business offers
innovative corporate advice; a leading market making business; some
of the most respected investment research available in the UK; and
a diverse range of high-quality investment opportunities, including
its hugely successful VCTs and principal finance activities.
The Group is based in Guernsey, London, Liverpool, Edinburgh and
Berlin. Shore Capital Stockbrokers Limited, Shore Capital and
Corporate Limited, Shore Capital Limited and Puma Investment
Management Limited are each authorised and regulated by the
Financial Conduct Authority. Shore Capital Stockbrokers Limited is
a member of the London Stock Exchange.
www.shorecap.gg
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END
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