AssetCo agrees delay to River and Mercantile bid
Martin Gilbert’s AssetCo has agreed to a further extension of the deadline to lodge a formal offer for River and Mercantile.
R&M requested the extension to today’s deadline to 5pm on 25 January which will allow time to finalise a potential offer for the remaining RMG Asset Management business for the benefit of all AssetCo and RMG shareholders.
Premier Miton dropped out of the race last week, leaving the field open for AssetCo with a clear run to bid for R&M in which it already owns just under 6% of the shares.
The AssetCo board, chaired by Mr Gilbert, believes that RMG Asset Management and AssetCo are “highly complementary”.
It said a combination of AssetCo and RMG Asset Management would create significant value for the combined group’s clients, portfolio managers, employees and shareholders.
The AssetCo directors also believe that there is material value in leveraging other elements of the AssetCo business and strategy to increase the value of RMG Asset Management and widen investor appeal.
Mr Gilbert, a former Standard Life Aberdeen co-CEO and founder of Aberdeen Asset Management, has stepped aside from the talks as he is deputy chairman of R&M.
Campbell Fleming, chief executive at AssetCo, said: “We welcome the board of River and Mercantile Group’s decision to extend the offer period. Discussions have progressed over the festive period and into January.
“The extended period will allow us to finalise a potential offer to acquire River and Mercantile (excluding its Solutions business) for the benefit of both AssetCo and River and Mercantile shareholders.
“Over the last few weeks, we have met with additional members of the River and Mercantile team which has confirmed our view of the great potential it has as an active equity and infrastructure investment manager.
“River and Mercantile has the people, expertise and product offering to be a core part of AssetCo as we build an agile 21st century asset and wealth management business that meets the needs of investors.”
Premier Miton chief executive Mike O’Shea last week confirmed his company was withdrawing its interest