European Wealth Group Limited Acquisition & Issue of Equity (6161J)

TIDMEWG TIDMEWGL

RNS Number : 6161J

European Wealth Group Limited

13 September 2016

13 September 2016

European Wealth Group Limited

("European Wealth", or "the Company", or the "Group")

Acquisition & Issue of Equity

The directors of European Wealth (AIM: EWG, EWGL), the growing wealth management group, are pleased to announce the acquisition of CIMCO Partners Management Limited, ("CPML") which manages the G20 Absolute Return fund which is based in Gibraltar for a maximum consideration of GBP750,000 ("the Acquisition").

Acquisition

CPML currently has approximately $22 million of funds under management. The Acquisition adds a third fund to European Wealth's in-house range and by offering an investment style that is not currently offered within the Group's portfolio it broadens the range of equity investment styles available ahead of the launch of an institutional equity service planned for later in the year.

European Wealth has entered into a binding Share Purchase Agreement ("SPA") with Michael Mechas (the "Vendor") to purchase CPML for a total maximum consideration of GBP750,000. The initial consideration of GBP500,000 is payable immediately on completion and will be satisfied by the issue of 909,091 of new ordinary shares of 5 pence each at a price of 55p ("Ordinary Shares") (the "Initial Consideration Shares"). There is, depending on the gross profitability of CPML, further deferred consideration which may become payable approximately 12 months after completion of up to a maximum of GBP250,000, also to be satisfied by the issue of further new Ordinary Shares.

Share subscription

The Vendor of CPML, Michael Mechas, will be joining European Wealth as a result of the Acquisition and will continue in his position as lead investment director of the G20 Absolute Return fund. He will join European Wealth's investment committee and, pursuant to the terms of a consultancy agreement between Michael and European Wealth Group Limited, will work with the executive team to identify international acquisitions, reporting to the Group Chief Executive (as Head of International Corporate Development, Europe and Americas). Michael is also subscribing directly in new ordinary shares in the Company for 454,545 new Ordinary Shares at a price of 55 pence per Ordinary Share (the "Subscription Shares").

Application has been made for the Initial Consideration Shares and Subscription Shares, together a total of 1,363,636 new Ordinary Shares, to be admitted to trading on AIM. It is expected that the dealings in these new Ordinary Shares will commence on AIM on or around 19 September 2016 ("Admission").

Following Admission, the Company will have in issue 24,810,481 Ordinary Shares ("Enlarged Issued Share Capital"). The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of Ordinary Shares with voting rights in the Company will be 24,810,481.

Also, following Admission, Michael Mechas will hold 1,363,636 Ordinary Shares representing approximately 5.5 per cent. of the Company's Enlarged Issued Share Capital.

John Morton, Group Chief Executive, commented "I am delighted to announce the acquisition which further strengthens our position as a broad based and established wealth manager and look forward to Michael joining the investment team and supporting the growth of the Company."

Michael Mechas, MD of CPML commented "I am pleased to be joining a forward looking and expanding wealth management business that has a focus on investment performance."

Enquiries

For further information, please contact:

 
 European Wealth 
 John Morton, Group Chief Executive    020 7293 0733 
                                       www.europeanwealth.com 
 
 Panmure Gordon 
 Fred Walsh / Alina Vaskina            020 7886 2500 
 
 Newgate Communications 
 Alistair Kellie / Adam Lloyd 
  / Ed Treadwell                       020 7680 6550 
 

Notes to Editors

European Wealth

European Wealth Group Limited (AIM: EWG, EWGL) is the holding company for the growing wealth management business, European Wealth Management Group Limited. Having commenced trading in 2010, European Wealth has two operating divisions, European Investment Management Limited ("EIM") and European Financial Planning Limited ("EFP") with circa GBP1.4 billion of AUM under influence and over 80 staff. Both are regulated by the FCA and were established to be RDR compliant from the outset, EIM opting for Restricted Adviser status and EFP for Independent Adviser status. Today the Group's head office is in London with an expanding network of offices both in the UK and continental Europe. Core services offered by the Group are financial planning, corporate pension advisory and investment management in both equity and fixed interest instruments. For further information on European Wealth's wealth management and financial planning services, please go to www.europeanwealth.com

This information is provided by RNS

The company news service from the London Stock Exchange

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September 13, 2016 02:00 ET (06:00 GMT)