Deal approved

Nucleus shareholders back takeover by James Hay

David Ferguson

David Ferguson: founder (pic: Terry Murden)

A majority of Nucleus shareholders have accepted James Hay’s £145 million cash offer for the Edinburgh-based wrap platform.

The group announced that 91.73% of Nucleus’s shareholders voted for the offer at a price of £1.88 a share.

The offer represented a premium of 42% on Nucleus’s share price on 1 December, the last day prior to the offer period.

The deal will create an expanded company with combined assets of £45bn.

Richard Rowney, chief executive of Salisbury-based James Hay, said: “I’m very pleased that shareholders have overwhelmingly accepted our offer. 

“We are excited by the prospect of working with the Nucleus team as we seek to create a leading independent adviser platform with circa £45bn of assets under administration, and the scale to invest in the technology, products and service for the benefit of advisers and their clients.”

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The transaction is still subject to regulatory approval but is expected to complete in the second half of the year. There will be no immediate change for the advisers and their clients on either platform.

At the end of March James Hay switched its offer to a takeover offer which directly targeted shareholders. 

According to the James Hay, the tactic would offer “greater certainty of execution” as it would require a lower level of approval to push the deal through.”

The acquisition of Nucleus was triggered by South Africa-based financial services group Sanlam indicating a desire to sell its 52% holding.

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