REG - AssetCo PLC - Acquisition

AssetcoAnnouncement

06/03/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230306:nRSF9244Ra&default-theme=true

RNS Number : 9244R  AssetCo PLC  06 March 2023

6 March 2023

LEI: 213800LFMHKVNTZ7GV45

 

For Immediate Release

AssetCo plc

("AssetCo" or the "Company")

Conditional acquisition of Ocean Dial Asset Management Limited by AssetCo

 

AssetCo (AIM: ASTO), the agile asset and wealth management company, is pleased
to announce that it has reached agreement to acquire the entire issued share
capital of Ocean Dial Asset Management Limited (the "Acquisition") from
Avendus Capital Asset Management (UK) Limited for a total consideration of
£4.125 million (the "Consideration").

The Consideration will be satisfied by the delivery of 2,928,258 ordinary
shares of £0,01 each in the capital of the Company ("Ordinary Shares") and
£2.125 million in cash of which 732,065    Ordinary Shares and £500,000
shall be deferred until after the calendar year end in accordance with the
provisions of the Sale and Purchase Agreement. The Ordinary Shares that form
part of the consideration will be transferred out of treasury post completion.

The Acquisition is conditional on, inter alia, approval by the FCA to a
change in controller which is expected to occur by the end of Q2 2023 and the
Reserve Bank of India and Securities Exchange Board of India which is expected
to run into Q3 2023. The Company will provide further updates, as appropriate.

About Ocean Dial Asset Management

Ocean Dial was established in 2005 and is wholly owned by Avendus Capital
Asset Management (UK) Limited. Ocean Dial's current business is the management
of the assets of the India Capital Growth Fund Limited, which, as at 28
February 2023, had a net asset value in excess of £127m and an annualised run
rate revenue of £1.4m. The Acquisition is expected to be earnings enhancing
for the Group and it is anticipated that further synergies will be achievable
following completion. Ocean Dial will have net assets as at completion of not
less than £250,000 or such other sum as may be required in order to meet its
regulatory capital requirements. The fund has been successfully advised for
several years by Guarav Narain and team, based in India.

Martin Gilbert, Chairman of AssetCo, commented:

"We are delighted to welcome India Capital Growth Fund as a client of our
Group and look forward to working with the Fund's current management to
provide the Fund's Board with a first class service.  AssetCo's mission is to
acquire, improve and grow asset management businesses with potential. We are
excited about the long-term potential that India offers and see opportunities
to add value by bringing Ocean Dial 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 concluded an arrangement with AssetCo, a UK
AIM-listed company, for the sale of our ODAM business. This sale will benefit
all the stakeholders of ODAM and allow us to participate in AssetCo's
on-going success as a shareholder. We look forward to working with Martin and
his team to complete the transaction and to a long and fruitful future
relationship."

 

 

For further information, please contact:

 AssetCo plc                       Numis Securities Limited

 Campbell Fleming, CEO             Nominated adviser and joint broker

 Peter McKellar, Deputy Chairman   Giles Rolls / Charles Farquhar

 Tel: +44 (0) 785 0464 301         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

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQNKPBKOBKDANK