The proposed takeover of Gresham House by Searchlight Capital Partners moved a step closer as the FCA signed off on the deal.
The regulator had been considering the proposal since it was tabled in July and has now cleared the plan.
Shareholders had already given the takeover their backing, with FCA approval the last significant hurdle to clear.
The deal still needs to work through the settlement process, and is set to complete in late 2023 or in the first quarter of next year.
Following completion, Gresham House will become a portfolio company of Searchlight alongside its other holdings.
The £11.05 per share offer values Gresham House at £469.8m. It represents a 63% premium to the undisturbed share price of £6.80.
The terms imply a valuation multiple of approximately 15.9 times earnings.
Gresham House has £8bn in assets across public and private equity funds, real assets strategies and real estate.
Its fund managers include Ken Wotton, who heads up the LF Gresham House UK Micro Cap, UK Multi Cap Income and UK Smaller Companies funds, as well as the Strategic Equity Capital investment trust.
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