WH Ireland To Acquire Harpsden Wealth Management For GBP7.8 Million

(Alliance News) - WH Ireland Group PLC on Monday announced its intent to acquire financial ...

Alliance News 30 November, 2020 | 11:37AM
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(Alliance News) - WH Ireland Group PLC on Monday announced its intent to acquire financial advisory and wealth management firm Harpsden Wealth Management Ltd for GBP7.8 million in cash.

To help fund the acquisition, the broker raised GBP5.3 million through a placing of 13.3 million shares at a price of 40 pence each, reflecting a 3.6% discount to the company's closing price on Friday of 41.50p.

Shares in WH Ireland were up 1.2% at 42.00 pence on Monday in London.

In addition to initial consideration of GBP5.3 million, WH Ireland will make two contingent payments of GBP1.25 million each over the next 24 months.

Harpsden has GBP250 million in assets under management, and GBP140 million in assets under influence.

WH Ireland said the acquisition is in line with its strategic aims, with a new team, increased distribution due to having five new advisers. It will create better economics for both firms, leading to GBP600,000 in annual cost synergies.

The acquisition is conditional on shareholder approval at a general meeting on December 21 and regulatory approval from the UK Financial Conduct Authority.

"The acquisition of Harpsden is in line with our stated strategy of growing the Wealth Management division through both organic and inorganic growth. The progress we have made in reorganising our business is evidenced by our return to profitability and we now have a robust operating platform from which to build both businesses. The conditional acquisition will add assets to our platform and also strengthen key elements of our proposition for the future," said Chief Executive Officer Phillip Wale.

By Dayo Laniyan; dayolaniyan@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
W H Ireland Group PLC 4.25 GBX 0.00 -

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