Panmure Gordon & Co. plc
(“Panmure Gordon” or the "Company”)
Acquisition of Charles Stanley Securities
Panmure Gordon (AIM: PMR), a leading independent stockbroker and investment bank, announces that further to the announcement released on 6 May 2015, the Company, through its wholly owned subsidiary Panmure Gordon (UK) Limited, (together the “Group”), has now exchanged contracts to acquire Charles Stanley Securities ("CSS"), the investment banking division of Charles Stanley Group Plc (“Charles Stanley”). Completion is expected to occur within approximately four weeks of exchange.
CSS is the equity capital markets business of Charles Stanley and is primarily focused on providing advisory, broking and research services to the small and mid-cap sector in the UK. CSS has a portfolio of corporate clients which, subject to due diligence and the completion of transfer formalities, will transfer to Panmure Gordon. It is anticipated that the acquisition will result in a significant increase in the overall size of the Company’s portfolio of corporate clients.
Those aspects of CSS which will be acquired by the Company are estimated to have accounted for approximately £1 million of Charles Stanley's profit before tax for the 12 months to 31 March 2014.
The consideration for the acquisition will comprise a payment on completion of up to £1.5 million in cash and deferred consideration comprising an equal split between the Group and Charles Stanley of retainer and corporate transaction fees which emanate from the transferred business and are earned in the 12 month period following completion up to a maximum of £5m.
Phillip Wale, Chief Executive of Panmure Gordon said “We are excited about the addition of the Charles Stanley Securities business which will continue our strategy of growing the Company, to focus firmly on serving our corporate and institutional clients and to improve value for our shareholders.”
Philip Tansey, Chief Financial Officer
Susanna Freeman, Company Secretary
|020 7886 2500|
Grant Thornton Corporate Finance (Nominated Adviser)
Philip Secrett/Salmaan Khawaja/Jen Clarke
Buchanan (Financial PR)
Mark Edwards/Helen Chan/Stephanie Watson
020 7383 5100
020 7466 5000