REG - AssetCo PLC - Acquisition of Ocean Dial Asset Management Ltd

AssetcoAnnouncement

02/10/2023 07:00

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RNS Number : 2614O  AssetCo PLC  02 October 2023

2 October 2023

LEI: 213800LFMHKVNTZ7GV45

 

AssetCo plc

("AssetCo" or the "Company")

Completion of acquisition of Ocean Dial Asset Management Limited

 

AssetCo (AIM: ASTO), the agile asset and wealth management company, is pleased
to confirm completion today of its acquisition of the entire issued share
capital of Ocean Dial Asset Management Limited (the "Acquisition") from
Avendus Capital Asset Management (UK) Limited. This follows confirmation of
relevant clearances from the FCA and Indian regulators.

The initial consideration has been satisfied by the delivery of 1,464,129
ordinary shares of £0.01 each in the capital of the Company ("Ordinary
Shares") and £2.46m in cash (£1.82m net of cash within the business). Up to
a further 1,464,129 Ordinary Shares may be issued, subject to adjustment, on a
deferred basis until after the calendar year end in accordance with the
provisions of the Sale and Purchase Agreement. As part of the Completion
arrangements, it was agreed to bring forward £0.5m of cash which was to form
part of the deferred consideration and to replace this with the issue of
shares rather than the mixtures of cash and shares originally proposed.

All Consideration shares have and will be issued at an agreed issue price of
68.3p per share out of Treasury. Following the transfer for the initial
consideration, AssetCo has 6,818,898 ordinary shares remaining in treasury.

The Company announces in accordance with DTR 5.6.1 that, as at 2 October 2023
and following the transfer, the Company's issued share capital consists of
149,292,970 Ordinary Shares of which 6,818,898 are held in treasury. The total
number of voting rights attaching to the Ordinary Shares is therefore
142,474,072.

The above figure (142,474,072) may be used by shareholders as the denominator
for any calculation pursuant to which they determine if they are required to
notify their interest in, or a change to their interest in, the Company's
Ordinary Shares under the FCA's Disclosure Guidance and Transparency Rules.

About Ocean Dial Asset Management

Ocean Dial's current business is the management of the assets of the India
Capital Growth Fund Limited, which, as at 22 September 2023, had a net asset
value of c.£156m generating an annualised run rate revenue for the manager of
£1.86m. The Acquisition is expected to be earnings enhancing for the Group
and it is anticipated that further synergies will be achievable. Ocean Dial
had estimated net assets at completion exceeding £0.6m. The fund has been
successfully advised for several years by Gaurav Narain and his team based in
India and UK.

Martin Gilbert, Chairman of AssetCo, commented:

"We are delighted to have completed the acquisition of Ocean Dial on the
timetable originally envisaged and to welcome India Capital Growth Fund as an
important and valued client of our Group.  We are excited about the long-term
potential that India offers and see opportunities to add value by bringing
Ocean Dial including Gaurav and his team together with the other active equity
asset management businesses we are combining under the River and Mercantile
brand."

Gaurav Deepak, Co-Founder and CEO of Avendus Capital (India) added:

"Avendus is delighted to have completed the sale of Ocean Dial to AssetCo, and
we look forward to a long and fruitful future relationship with Martin and his
team."

 

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 2500         Tel: +44 (0) 20 7379 55151

For further details, visit the website, www.assetco.com
(http://www.assetco.com)

Ticker: AIM: ASTO.L

 

 

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