All-share deal

Rathbones merges with Investec wealth

Handshake deal

The deal will see Rathbones retain its listing

Rathbones has agreed to merge with the UK wealth business of Investec in an all-share deal valuing the latter’s business at £839 million.

The deal excludes excludes Investec Bank (Switzerland) AG and Investec Wealth & Investment International.

Rathbones will remain an independent listed company with Investec as a long-term, strategic shareholder.

Investec will have a 41.25% stake in Rathbones with voting rights limited to 29.9%.

The enlarged group will have around £100bn of funds under management and administration.

Cash synergies of at least £60m are forecast, primarily cost savings but also higher net interest income.

The deal is expected to enhance earnings for Rathbones in year one after completion with low-teens EPS accretion targeted by year three and a double-digit post-tax return on invested capital in the third full year also forecast.

Fani Titi, Investec Group chief executive, said: “The strategic fit of the two businesses is compelling with complementary strengths and capabilities to enhance the overall proposition for clients.”

Clive Bannister, chair of Rathbones, commented: “This transaction not only presents a compelling strategic and financial rationale, but also accelerates Rathbones’ growth strategy.”

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