Completion of Share Purchase Acquisition

RNS Number : 6907I

Alpha Growth PLC

06 December 2022

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended). Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Alpha Growth plc

(" Alpha " or the "Company")

Completion of Share Purchase Acquisition

Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading financial services specialist in the growing life insurance and longevity asset class, is pleased to announce t hat it has now successfully completed its previously announced share purchase acquisition of Old Mutual International (Guernsey) Ltd, initially announced on 24 March 2022. Following completion of the acquisition, the entity is now renamed as Alpha International Life Assurance Company (Guernsey) Ltd ("AILAC")

Top 5 Points regarding the acquisition

· The acquisition is fully complete and has now been approved by both the Guernsey Financial Services Commission, as well as the South African regulator.

· The acquisition adds $275 million of AUM to Alpha, significantly increasing our total AUM to ~$700 million. Alpha's revenue will also increase significantly due to the increase in AUM. 

· Alpha will receive full revenue and EBIT contribution from 1 August 2022.

· Gobind Sahney, Jason Sutherland and Dan Gray will join the board of the acquired company.

· We have rebranded the entity to Alpha International Life Assurance Company (Guernsey) Ltd. ("AILAC")  

As announced on 24 March 2022, The Guernsey based insurance company is a Category 1 international life insurer, with approximately 3,785 long-term life insurance contracts in force as of 31 December 2021.

The acquisition has a transaction value of ~$4.4m and includes all operations of the company, including its assets under management of approximately $275m as valued at 30 November 2022. The business is being acquired from a major international insurance group. 

This acquisition significantly increases Alpha's assets under management and provides an excellent platform for Alpha to offer both life insurance-based wealth management products and life insurance linked funds, either originated by Alpha or through other partners, to a broad base of European based UHNWI, family offices and institutions. 

Additionally, the life insurance company provides a good European based platform for further acquisitions. All activities are subject to regulatory approval and oversight.

AILAC specializes in providing insurance wrapped savings products to a broad retail community through independent distributors and insurance sales networks, to serve the individuals' financial planning needs, it is headquartered in Guernsey.

The Directors of the Company's subsidiary Providence Life Assurance Company (Bermuda) Ltd being Gobind Sahney, Jason Sutherland, and Dan Gray will be joining AILAC's board.

Gobind Sahney, Executive Chairman of Alpha , commented, "Our aim at Alpha is to help our clients both build and protect wealth, whilst also generating significant returns for our shareholders. The completion of this acquisition is an incredibly significant step in our goal of managing over $2 billion of AUM by 2025 and is just one of several exciting initiatives our team have been progressing."

"We are also in the final stages of completing our previously announced (on 17 November 2022) acquisition of Havelet Assignment Company Limited and I look forward to updating our shareholders in due course. With continued and ongoing market volatility caused by world events further underpinning the appeal of our uncorrelated offerings, as well as the potential for certain acquisition opportunities presenting themselves over the course of the next 12 to 18 months, there is a possibility, if all goes well, that we may beat our target of reaching $2bn of AUM by 2025."

** ENDS **

For more information, please visit www.algwplc.com or contact the following:

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Alpha Growth plc	[phone]
Gobind Sahney, Executive Chairman	[e-mail]
Allenby Capital Limited	[phone]
Amrit Nahal (Sales and Corporate Broking)
Nick Athanas / Piers Shimwell (Corporate Finance)
UK Investor Relations - Mark Treharne	[e-mail]

About Alpha Growth plc

Specialist in Longevity Assets

Alpha Growth plc is a financial advisory business providing specialist consultancy, advisory, and supplementary services to institutional and qualified investors globally in the multi-billion dollar market of longevity assets. Building on its well-established network, the Alpha Growth group has a unique position in the longevity asset services and investment business, as a listed entity with global reach. The group's strategy is to expand its advisory and business services via acquisitions and joint ventures in the UK and the US to attain commercial scale and provide holistic solutions to alternative institutional investors who are in need of specialised skills and unique access to deploy their financial resource in longevity assets.

Longevity Assets and Non-correlation

As a longevity asset, it is non-correlated to the real estate, equity capital and commodity markets.  Its value is a function of time because as time passes the value gets closer to the face value of the policy. Hence creating a steady increase in the net asset value of the investment. This makes it highly attractive to investors wishing to counteract volatility within an investment portfolio and add yield.

Note: The Company only advises on and manages Longevity Assets that originate in the USA where the structured and life settlement market is highly regulated.

Forward Looking Statements Disclaimer

Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company's or, as appropriate, the Company's directors' current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward- looking statements, which speak only as of the date of this document.  Readers should not treat the contents of this document as advice relating to legal, taxation or investment matters, and are to make their own assessments concerning these and other consequences, including the merits of information and the risks.  Readers of this announcement are advised to conduct their own due diligence and agree to be bound by the limitations of this disclaimer.

Important Notice

The content of this announcement has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (FSMA). This announcement has been issued by and is the sole responsibility of the Company. The information in this announcement is subject to change.

 

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