Merger of Rathbones and Investec UK wealth arm gets regulatory okay

(Alliance News) - Investec PLC and Ltd, and Rathbones Group PLC said on Wednesday an all-share ...

Alliance News 2 August, 2023 | 7:47AM
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(Alliance News) - Investec PLC and Ltd, and Rathbones Group PLC said on Wednesday an all-share merger of Rathbones with Investec's Investec Wealth & Investment Ltd had received all regulatory clearances.

The two have said the merger will create one of UK's leading wealth manager with around GBP100 billion of funds under management and administration. Investec will own 41.25% and only exercise 29.9% voting rights in the newly merged entity. Rathbones shareholders will have an economic interest of 58.75% and voting rights of 70.1%.

In separate statements, Investec and Rathbones said on Wednesday the completion of the merger and admission of the new shares is now anticipated to occur on September 21, subject to the Financial Conduct Authority and London Stock Exchange agreeing to admit the new shares on the London Stock Exchange.

Investec and Rathbones back in April entered into a definitive agreement to merge Rathbones with Investec Wealth & Investment.

Investec Wealth & Investment includes Investec's wealth and investment businesses in the UK and Channel Islands but excludes Investec Bank AG and Investec Wealth & Investment International (Pty) Ltd, both of which will remain wholly-owned subsidiaries of Investec.

In June, Rathbones shareholders approved the merger.

The enlarged Rathbones will remain an independent premium-listed company in London operating under the Rathbones brand with Investec as a long-term, strategic shareholder. It will continue to be led by Rathbones Chair Clive Bannister and Chief Executive Officer Paul Stockton.

Rathbones said on Wednesday it expects to to bring forward payment of a portion of the final dividend for the 2023 financial year shortly before the completion of the merger.

In London, Rathbones shares were up 0.7% to 1,794.60 pence early Wednesday. But Investec shares lost 1.3% to 477.20p in London. They were down 0.1% at ZAR112.22 in Johannesburg.

By Artwell Dlamini, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Rathbones Group PLC 1,740.00 GBX -1.47 -
Investec PLC 514.00 GBX -0.39 -

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