Funds milestone

Nucleus chalks up record ahead of takeover

David Ferguson

David Ferguson: ‘incredibly strong figures’ (pic: Terry Murden)

Nucleus Financial, the Edinburgh wrap platform, secured its best ever month for cash inflows ahead of its expected takeover.

In March customers transferred £637 million funds, the highest monthly figure on record.

The company grew assets under administration (AUA) to £18bn as of 31 March 2021, up 28.4% year-on-year and 3.1% on the previous quarter.

By comparison, the FTSE All-Share Index increased 23.3% year-on-year and by 4.3% on the last quarter.

The latest figures were released yesterday as James Hay published the documents relating to the £145 million takeover offer for the company.

James Hay initially proposed to acquire Nucleus by way of a scheme of arrangement. This would have required the support of a majority of the holders of Nucleus shares.

After facing opposition from some shareholders, it was agreed to pursue the deal through a takeover offer. This will require the support of holders of 75% of the shares in Nucleus, rather than a majority of shareholders.

James Hay has obtained irrevocable undertakings to support its offer from the holders of 55.88% of Nucleus shares, including Mr Ferguson.

James Hay set 1pm on 4 May as the first closing date for acceptances.

A number of Nucleus’ employees will transfer to FNZ, which will provide platform technology for the enlarged group.

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