Rathbones issues shares for Speirs & Jeffrey acquisition

The acquisition has dominated flows at the investment group

Tilney

Rathbones has announced it will issue 600,000 new ordinary shares as part of its acquisition of Scotland’s second-largest wealth manager Speirs & Jeffrey.

The deal, which was confirmed on 31 August 2018, was for a total of £104m, comprising £79m cash and £25m through the issue of one million new Rathbones shares. Shares will be locked into agreement for three years from completion.

In a trading update today, Rathbones said as operational targets have been met, it will issue the 603,913 ordinary shares to satisfy the payment of the contingent consideration due under the terms of the acquisition.

It said applications have already been made to the FCA and the London Stock Exchange to be admitted to the premium listing segment of the official List and expects to begin trading when markets open on 23 May 2019.

Following this Rathbones will have 55,346,007 ordinary shares of 5p each in issue.

Rathbones completed its acquisition of Speirs & Jeffrey last August. The deal was initially predicted to reach £250m.

Speirs & Jeffrey has dominated recent growth in assets under management at Rathbones, while inflows into the main investment business have remain stunted.

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