REG - AssetCo PLC - Completion of acquisition of SVM Asset Management

AssetcoAnnouncement

01/11/2022 07:17

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RNS Number : 8224E  AssetCo PLC  01 November 2022

1 November 2022

LEI: 213800LFMHKVNTZ7GV45

 

AssetCo plc

("AssetCo" or the "Company")

Completion of acquisition of SVM Asset Management Holdings Limited

On 21 June 2022 AssetCo, the agile asset and wealth management company,
announced that it had reached agreement to acquire the entire issued share
capital of SVM Asset Management Holdings Limited, the holding company of SVM
Asset Management Limited (together "SVM"), (the "Acquisition").

 

The Acquisition was conditional on, inter alia, approval by the FCA to the
change of controller of SVM. AssetCo is pleased to announce that this approval
has been forthcoming and all the conditions pertaining to the Acquisition have
been satisfied. Completion of the Acquisition took place earlier today.

 

The consideration payable under the terms of the Acquisition was, after
balance sheet adjustments, £11.2 million satisfied by the issue of £9
million nominal of 1% fixed rate unsecured convertible loan notes 2023 in
AssetCo (the "Loan Notes") and, as a result of higher net assets of SVM on
completion of £4.5 million, approximately £2.2 million in cash. On
completion SVM had cash balances of £5 million. The Loan Notes may be
converted into fully paid ordinary shares of 1p each in the Company ("Ordinary
Shares") in certain circumstances. Up to £2 million in nominal value may be
converted on or before 31 December 2022 at the market price at the time of
conversion. Thereafter conversion will be at an effective price of £1.45 per
Ordinary Share.  Unless converted the Loan Notes will be repaid on
31 December 2023.

 

SVM is a key component of AssetCo's plans to have a strong and dynamic asset
management hub in Edinburgh. Completion of the Acquisition brings assets
managed by the AssetCo group of companies in the Scottish capital to nearly
£700 million. The intention is that, over time and subject to appropriate
regulatory approvals and client consents, the majority of compliance,
operational, distribution and marketing resources will be shared within the
broader AssetCo group of companies. At the same time, the unique qualities and
strengths for which SVM are well known will be preserved to form a bedrock of
growth for the future.

 

Martin Gilbert, Chairman of AssetCo, commented:

 

"The completion of the acquisition of SVM is part of AssetCo's overall
strategy of investing in, building and managing asset and wealth management
businesses.

 

We are proud to be building an asset management hub of investment excellence
in Edinburgh and the completion of the SVM acquisition is integral to this.
SVM is a very well regarded fund management firm with a strong heritage and
investment track record. We are looking forward to building upon SVM's many
strengths as we continue to develop a listed equity business at AssetCo to
meet the long-term financial needs of investors."

 

Colin McLean, the founder of SVM commented:

 

"Speaking for myself and the whole team at SVM we are immensely proud of what
we have achieved over the past 32 years. We could not have done so without the
unstinting support of our clients, many of whom have been with us since the
early days. We look forward to working with AssetCo to build an expanded and
dynamic equities platform to serve all of our clients and leverage
opportunities for the future."

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                Maitland/AMO

 Joint broker                               Neil Bennett

 Charles Leigh-Pemberton / Atholl Tweedie   Rachel Cohen

 Tel: +44 (0) 20 7886 2906                  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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