Tavistock Investments has agreed to sell two of its subsidiary businesses – Tavistock Partners and Tavistock Estate Planning Services – to Saltus Partnership Holdings.
The deal, which is subject to approval from shareholders and ‘change of control’ approval from the FCA, will see the business arms sold for a cash consideration of up to £37.8m. This represents a premium of 211% on Tavistock’s market cap, as at market close yesterday (30 September 2024).
Tavistock stated it has “no plans” to return any of the cash made to shareholders. Instead, it intends to use the gains for “working capital purposes”, including potential future acquisitions.
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Tavistock is also seeking approval from shareholders to be able to buy back ordinary company shares over the next five years, which the cash injection would also be used for.
So far, shareholders representing more than 30% of Tavistock’s issued ordinary share capital have already voted in favour of both the sale of assets and the buyback authority.
Brian Raven, Tavistock’s chief executive, said: “The disposal enables us to realise a substantial profit on our investment in the businesses involved, providing us with significant working and development capital. This will enable the continued reshaping of the group to optimise the balance between regulatory risk and commercial reward.
“I would like to thank Malcolm Harper and his team for their contribution to Tavistock and wish them every success.”
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Jon Macintosh, Saltus’s managing partner, added: “We are delighted to welcome Mal and his team on board. We are impressed by both the growth record of the business and the quality of care it provides to clients.”
