STM Group PLC Completion of Acquisition of London & Colonial (1122N)
21 October 2016 - 5:00PM
UK Regulatory
TIDMSTM
RNS Number : 1122N
STM Group PLC
21 October 2016
STM Group Plc
("STM", the "Company" or the "Group")
Completion of the acquisition of
London & Colonial Holdings Limited
STM Group Plc (AIM: STM), the cross border financial services
provider, is pleased to announce the completion of the acquisition
of the entire issued share capital of London & Colonial
Holdings Limited ("London & Colonial" or "LCH") ("Completion")
as announced on 13 September 2016 (the "Acquisition"), ahead of the
expected completion timeline.
London & Colonial will continue to operate under its own
brand name but will be fully integrated into the enlarged Group.
Completion was conditional on the delivery of 100% of the voting
share capital and regulatory approval from the Gibraltar Financial
Services Commission (GFSC), with approval already having been
received from the UK Financial Conduct Authority (FCA). All
conditions have now been satisfied.
Highlights of the Acquisition include:
-- STM achieves its strategic objective of entering the UK SIPP
market which the Board believes will be scalable; thus being able
to accommodate returning UK expatriates with a SIPP offering as
well as organically growing the business in UK
-- Both STM and LCH will benefit from accessing each other's intermediary networks
-- The Acquisition is being made from Group cash resources and a
new short term bank credit facility and is expected to be earnings
enhancing in FY 2017
-- LCH's UK SIPP business already has approximately 2,000
members and generates a turnover of approximately GBP1 million
-- LCH's Gibraltar life assurance business has approximately
1,200 policyholders; and generates a net turnover of approximately
GBP2 million
-- LCH's Gibraltar QROPS business has approximately 300 QROPS
under management, and is expected to be easily absorbed into the
STM's own QROPS administration system
-- The Board believes that LCH has a good quality management team that will remain in place
-- Potential for redeployment of surplus regulatory capital to fuel further growth
-- Access to an LCH in-house technology platform expected to be
deployed across the Group in the first quarter of 2017, designed to
be i) compatible for both our life assurance business as well as
our QROPS and SIPP business and ii) structured to lead to
significant efficiencies and cost reductions.
Commenting on the Completion Alan Kentish, Chief Executive
Officer of STM, said:
"We are very pleased to have completed the acquisition of London
& Colonial ahead of the expected timeline. This illustrates the
enthusiasm from both sides to create an enlarged Group with greater
strength and a collective focus.
"London & Colonial is a very well respected business and one
which can continue to prosper with the additional support from STM.
We believe this is a clear case of the aggregate of the two
businesses being worth significantly more than the sum of the
parts, and I look forward to updating the market on our progress in
the near future."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
For further information, please contact:
STM Group Plc
Alan Kentish, Chief Executive Tel: 00 350 200
Officer 42686
alan.kentish@stmgroupplc.com www.stmgroupplc.com
Therese Neish, Chief Financial Tel: 00 350 200
Officer 42686
therese.neish@stmgroupplc.com
FinnCap www.finncap.com
Matt Goode / Emily Watts - Corporate Tel: +44 (0) 20
Finance 7220 0500
Mia Gardner - Corporate Broking
Walbrook www.walbrookpr.com
Tom Cooper / Paul Vann Tel: +44 (0) 20
7933 8780
Mob: +44 (0) 797
122 1972
tom.cooper@walbrookpr.com
Notes to editors:
STM is a multi jurisdictional financial services group which is
listed on the AIM Market of the London Stock Exchange. The Group
specialises in the delivery of a wide range of financial service
products to professional intermediaries and the administration of
assets for international clients in relation to retirement, estate
and succession planning and wealth structuring.
Today, STM has operations in Gibraltar, Malta, Jersey and Spain.
The Group is looking to expand through the development of
additional products and services that its ever more sophisticated
clients demand. STM has developed a specialist international
pensions division which specialises in Qualifying Recognised
Overseas Pension Schemes (QROPS), Qualifying Non UK Pension Schemes
(QNUPS). STM has a Gibraltar Life Insurance Company, STM Life plc,
which provides life insurance bonds - wrappers in which a variety
of investments, including investment funds, can be held.
Further information on STM Group can be found at
www.stmgroupplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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