Deutsche’s Numis swoop more logical than it looks
28/04/2023 11:03
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Liam Proud
LONDON, April 28 (Reuters Breakingviews) - The lender’s
$500 mln purchase of the UK broker seems an odd move for CEO
Christian Sewing, who once aimed to shrink investment banking.
But the valuation isn’t silly, and a deal may boost Deutsche
Bank’s corporate lending arm. Numis’s smaller peers may also now
seek a new home.
Full view will be published shortly.
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CONTEXT NEWS
Deutsche Bank will buy Numis, the UK corporate broker, for
339 pence per share in cash, the two groups said on April 28.
Numis shareholders will also get a dividend of 6 pence per
share, which is not conditional on whether the deal succeeds, as
well as a further 5 pence per share dividend that will only be
paid if the acquisition goes through.
The Deutsche cash offer values Numis’s equity at 382 million
pounds ($476 million), after stripping out the target’s treasury
shares and adding in stock that it plans to use to fund staff
pay awards.
Numis investors with about 27% of the company’s stock have
already signed irrevocable deals in support of the deal.
Numis’s share price rose by 67% to 342 pence as of 0926 GMT
on April 28.
(Editing by George Hay and Pranav Kiran)
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