Property fund manager Braemar Group has accepted a takeover offer valued at £4m from AIM-listed rival Brooks Macdonald Group.
The cash offer of 2.25p/share represents a premium of 63.6% to the closing price last night, 7 June, and 58% to the average for the past six months.
Brooks had funds under management as at 31 March of £2.05bn. The company employs 160 people in London, Hampshire, Manchester, Tunbridge Wells and Edinburgh. Brooks has a market capitalisation of approximately £79m.
Marc Duschenes, chief executive of Braemar, based in Hale, Cheshire, said: "Whilst acting as a platform for accelerated growth for our business, the Offer represents delivery of value to our existing shareholders. We have long believed that our core funds' positioning in the marketplace adds value to investors' portfolios and I am delighted that these achievements have been recognised by Brooks Macdonald to the benefit of our shareholders and clients."
Braemar, in results published today, produced revenue of £2.59m in the year to the end of March and a reduced loss of £130,000, down from £210,000 last year. Funds under management rose 20% to £44m. The group also manages properties, with £500m of stock currently handled by Braemar Estates, though the value of large new contracts will not be felt until next year, the company said.
Chris Macdonald, chief executive of Brooks Macdonald, said: "I believe this to be an excellent opportunity for shareholders, clients and staff of both organisations. Braemar has a strong management team, fund management range and property management business which will complement Brooks Macdonald's existing offering and is in keeping with Brooks Macdonald's strategy of expanding its niche range of funds."
Collins Stewart Europe is acting as financial adviser to Brooks Macdonald Group. Zeus Capital is acting as financial adviser to Braemar Group.