Lighthouse Buys Tavistock Stock In Equity Raise Amid Strategic Deal (ALLISS)

LONDON (Alliance News) - Tavistock Investments PLC and Lighthouse Group PLC entered a strategic ...

Alliance News 14 November, 2018 | 10:21AM
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LONDON (Alliance News) - Tavistock Investments PLC and Lighthouse Group PLC entered a strategic alliance amid a GBP1.0 million investment by Lighthouse in the fund management firm as part of a GBP1.3 million fundraise by Tavistock.

Tavistock raised the GBP1.3 million through the issue of 38.1 million shares at 3.28 pence each. Of this, Lighthouse was by far the largest subscriber after investing GBP1.0 million to buy 30.5 million - or a 5.3% stake in the enlarged capital - of Tavistock.

The remaining GBP250,000 invested in the firm under the subscription was acquired by "existing shareholders and management".

This coincided with Lighthouse and Tavistock announcing a new strategic alliance with one another.

The deal will see Lighthouse - a financial advisory firm - gain access to the investment solutions offered by Tavistock. These will include its capital protection fund products that are principally invested in iShares by US asset manager BlackRock Inc and its Acumen fund range.

The products provided by Tavistock will "augment" the Luceo Asset Management range of investment products launched by Lighthouse in 2016.

"The establishment of a strategic relationship between Lighthouse and Tavistock is a significant development for both groups," Tavistock Chief Executive Officer Brain Raven said.

"Lighthouse is one of the leading financial advisory businesses in the UK with circa 400 advisers and as the preferred supplier of financial advice to 21 affinity group partners and their aggregate membership of more than 6 million individuals," Raven added.

"Its selection of Tavistock as its partner to develop further its Luceo Asset Management range of investment solutions, tailored to match and continue to match the client's agreed risk profile, is a strong endorsement of our expertise in this field," Raven continued. "We look forward to achieving considerable success together in the coming years."

Lighthouse Chief Executive Officer Malcolm Streatfield said: "Tavistock has demonstrated its ability to establish an investment management business of scale and I am delighted that we will be working together to develop additional high quality investment solutions for the benefit of our mutual client bases. I believe that this will be the start of a successful working relationship between Lighthouse and Tavistock."

Shares in Tavistock were 1.6% lower at 3.59 pence on Wednesday, Lighthouse up 4.1% at 27.59 pence.

By Ahren Lester; ahrenlester@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Tavistock Investments PLC 3.40 GBX 0.00 -
Lighthouse Group PLC 27.00 GBX 0.75 -
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