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Brewin Dolphin Hldgs (BRW)

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Wednesday 11 May, 2011

Brewin Dolphin Hldgs

Disposal of Corporate Advisory & Broking Division

RNS Number : 4122G
Brewin Dolphin Holdings PLC
11 May 2011
 



11 May 2011

 

Brewin Dolphin Holdings PLC (the "Group")

 

Disposal of Corporate Advisory & Broking Division (the "Division")

 

Further to the announcement made on 15 February 2011, the Group's operating subsidiary signed an agreement today for the disposal of the Division to a new partnership called N+1 Brewin.  Completion of the disposal is subject, inter alia, to receipt of certain regulatory authorisations for the new entity. 

 

N+1 Brewin will be capitalised jointly by European Financial Advisory and Asset Management Group, N+1, and senior management of the Division.

 

The Group will receive nominal goodwill consideration of £4m for the disposal by way of a 14% preferred interest in N+1 Brewin. The previously announced initial £1m cash payment is no longer receivable by the Group as the Group has consented to this £1m payment being retained by N+1 Brewin for working capital purposes.

 

The Group will receive a 6% per annum return on its preferred interest which will be paid in priority to ordinary distributions for the financial periods up to 2017.  It is still envisaged that the preferred interest will be held for the medium term, allowing the Group to benefit from any future uplift in the new entity's value if and when it ultimately converts into N+1 equity.

 

The Division reported an operating profit of £1.3m from turnover of £10.9m in the year ended 26 September 2010.  The provisional operating profit for the half year ended 27 March 2011 was £0.1m from a turnover of £4.6m. At the year end 26 September 2010, the Division had gross assets of £33.4m and nil net assets, the provisional gross assets as at 27 March 2011 were £16.5m and nil net assets. 

 

The Division will remain part of the Group's operating subsidiary until completion, which is anticipated to take place by the Group's year end in September 2011. 

 

The proposed disposal will free the Group from its regulatory capital requirement for the Division and simplify the structure of the Group into that of a pure Investment Manager. The annual interest and any eventual value realised from the preferred interest in the new entity will be invested in the Group.

 

Further announcements will be made as appropriate.

 

For further information please contact:

 

Jamie Matheson

Andrew Hayes/Wendy Baker

Executive Chairman

Hudson Sandler

Brewin Dolphin


020 7248 4400

020 7796 4133

 

Notes for editors:

Brewin Dolphin Holdings plc is a leading independent UK investment manager with £25 billion of funds under management. (www.brewin.co.uk)

N+1 is a leading independent European financial advisory and asset management group, specialising in M&A, debt advisory, equity capital markets, private equity, asset management and real estate. Revenues and net profits were E50m and E20m respectively in 2009 (www.nmas1.com)

The Brewin Corporate Advisory and Broking Division is a leading integrated UK advisor to the small and middle market. It has circa 80 corporate clients and circa 100 institutional clients and has raised over £1.7bn for clients and worked on deals valued at £3.4bn over the last four years (www.brewincorporate.co.uk)


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