Shareholders in Evolution will receive 53.8 million new Investec shares which equates to a value of 100.24 pence per Evolution share. This is itself a premium of around 45% when compared to the average mid-market price per share over the previous three months.
The Evolution Group is the owner of private client manager Williams de Broë that in a separate dealis to buy BNP Paribas Private Investment Management Limited, the former Fortis Private Investment Management business in the UK, for £5m plus the value of the net assets of PIM, believed to be around £20m.
Subject to FSA confirmation, the move will see approximately £1.8bn assets under management transfer to Williams de Broë.
A second part of the Group is Evolution Securities, an investment bank with an international institutional corporate client base.
The deal is subject to shareholder approval but this is expected to go through in the second half of November.
Stephen Koseff, chief executive of Investec, said: “This fits very well with our strategy to build non-lending revenues. The group has seen strong growth in third-party assets under management and the acquisition of Evolution will add further momentum. The transaction strengthens our position in the UK, giving us greater scale in both private client wealth management and investment banking."
