Staff unrest

Nucleus employees raise concerns over takeover

David Ferguson

David Ferguson: founder

Staff at Nucleus Financial have raised opposition to the proposed £145 million takeover of the Edinburgh-based financial wrap platform because of its impact on jobs.

Directors of the company, founded by David Ferguson, have recommended shareholders accept a 188p per share cash offer from James Hay Holdings.

The document notes that employees objected to changes planned by the buyer and the proposal to switch about 230 of the 400 staff at Nucleus to FNZ, which also has offices in Edinburgh. It is expected that FNZ will provide platform technology for the enlarged group.

South African financial services group Sanlam, which has a controlling 52% shareholding in Nucleus is pushing for the deal to be approved.

The document notes that James Hay has said it will work with Nucleus’ management team to evaluate the existing platform arrangements and “intends no change to existing locations or place of work for employees”.

The takeover must be approved by shareholders who represent 75% of votes cast at meetings that will be held on 30 March.

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