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Brewin Dolphin Hldgs (BRW)

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Tuesday 15 February, 2011

Brewin Dolphin Hldgs

Disposal

RNS Number : 2219B
Brewin Dolphin Holdings PLC
15 February 2011
 



15th February 2011

Embargoed for release 7am

 

 

Brewin Dolphin Holdings PLC

 

Disposal of Corporate Advisory & Broking Division

 

Brewin Dolphin Holdings Plc ('Group') has today signed a memorandum of understanding relating to the proposed disposal of its Corporate Advisory & Broking division to a new partnership entity to be called N+1 Brewin. The entity will be capitalised jointly by leading European financial advisory and asset management group, N+1, and senior management of the division.

 

Group will receive a total nominal goodwill consideration of £5m for the disposal, comprising £1m cash up front and a 14% preferred interest in the new entity with a nominal value of £4m. Group will receive a 6% per annum return on its preferred interest which will be paid in priority to ordinary distributions for the period to 2017.  It is envisaged that the preferred interest will be held for the medium term, allowing Group to benefit from any future uplift in the new entity's value when it ultimately converts into N+1 equity.

 

The Corporate Advisory & Broking division reported an operating profit of £1.3m from turnover of £10.9m in the year ended 26 September 2010.  At the year end, the division had gross assets of £33.4m and nil net assets. 

 

Completion of the transaction is subject to contract and receipt of regulatory approval for the new entity.  The division will remain part of the Group 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.

 

Further announcements will be made as appropriate.

 

Jamie Matheson, the Chairman of the Group, said "This transaction will enable Brewin Dolphin to wholly focus on its core investment management business.  We wish the team every success with their new partner."

 

Graeme Summers, Head of the Corporate Advisory & Broking division and Managing Partner -elect of N+1 Brewin, said "The new entity will enable us to enhance our service offering for our clients by combining the strength, depth and international reach of N+1's European financial advisory and asset management expertise, with the existing skills of our team here in the UK. The team is very excited by the significant opportunities that lie ahead."

 

The Group is being advised on this transaction by West Hill Corporate Finance Limited.

 

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 90 corporate clients and 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)


This information is provided by RNS
The company news service from the London Stock Exchange
 
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