23 November 2016 – acquisition and placing
The company has announced the acquisition of PBFS, the independent financial advisory arm of Price Bailey LLP, a firm of Chartered Accountants with offices in London, Bishop’s Stortford, Cambridge, Ely and Norwich. Following the deal, PBFS will continue to share offices with, and benefit from client introductions from Price Bailey LLP. PBFS currently employs eight advisors and fourteen support staff and has approximately £313m of new Funds under Advice, including £166m of funds being managed on a discretionary basis.
Of the initial consideration £2m will be paid in cash and the rest through the issue of 21.26 million new ordinary shares upon completion. A further fixed second payment will be made in cash upon the first anniversary of completion of £150k together with a variable second payment of up to £500k. The company has placed 70 million shares at around 3p each in an associated placing. We rate the shares as a SPECULATIVE BUY following the news.