The sale of River and Mercantile remains a possibility after the company’s board agreed to further extend the deadline by which Assetco is required to announce its intention to make a firm offer.
In November 2021, River and Mercantile confirmed that it had been approached by two potential suitors: Martin Gilbert’s (pictured) outfit Assetco and Premier Miton.
They were given until 21 December to make offers, a deadline which was then extended to 18 January 2022.
Premier Miton announced on 13 January that it was departing the field, leaving it clear for Assetco. However, a further extension has now been given to 25 January.
There remains no certainty that an offer will be made.
What’s the hold up?
As previously reported, both Assetco and Premier Miton stated that any offer would be conditional on River and Mercantile completing the sale of its Solutions business to Schroders, which is due in the first quarter of 2022.
Whether this remains the only stumbling block is unclear, as few details are given in the stock exchange announcements from either company.
River and Mercantile said that discussions remain “ongoing at this time”, adding that the 25 January deadline can be further extended.
While extoling the virtues of a deal, Assetco reiterated that there “can be no certainty that a firm offer will be made”.
Company chief executive Campbell Fleming said: “We welcome the board of River and Mercantile Group’s decision to extend the offer period. Discussions have progressed over the festive period and into January.
“The extended period will allow us to finalise a potential offer to acquire River and Mercantile (excluding its Solutions business) for the benefit of both AssetCo and River and Mercantile shareholders.
“Over the last few weeks, we have met with additional members of the River and Mercantile team which has confirmed our view of the great potential it has as an active equity and infrastructure investment manager.”
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