River And Mercantile Share Discussion Threads

[speedsgh] 23/11/2021 09:35

Here is the AssetCo rns...



The Board of AssetCo plc ("AssetCo" or the "Company") notes the announcement by RMG regarding a possible offer from AssetCo and confirms that it has submitted an indicative non-binding securities exchange proposal for the entire issued and to be issued share capital of RMG that is not already owned by AssetCo to the Board of RMG (the "Possible Offer").

The Possible Offer is made for the remaining RMG asset management business ("RMG Asset Management") post the sale of RMG's Solutions business, and any offer made would be conditional on the completion of the sale of the solutions business.

The AssetCo directors believe that RMG Asset Management and AssetCo are highly complementary and that 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.

Whilst negotiations between RMG and AssetCo regarding the structure of a potential deal are continuing, the indicative non-binding proposal to the Board of RMG may lead to a requirement for a reverse takeover pursuant to Rule 14 of the AIM Rules.

There can be no certainty that the Possible Offer or any offer will ultimately be made, nor as to the terms of any such offer.

Rule 2.6(a) of the Code requires that AssetCo, by no later than 5.00 p.m. on 21 December 2021, being the 28th day following the date of this announcement, either announces a firm intention to make an offer for RMG in accordance with Rule 2.7 of the Code or announces that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Takeover Panel, in accordance with Rule 2.6(c) of the Code.

AssetCo currently holds 5 million RMG shares representing approximately 5.85 per cent. of its voting rights.

Martin Gilbert, Chairman of AssetCo and Deputy Chairman of RMG, has recused himself from the RMG Board for the purposes of discussions in relation to the Possible Offer.

A further announcement regarding the Possible Offer will be made in due course as appropriate.

[wee jimmy] 23/11/2021 09:21

AssetCo too? If it comes to it I would much rather have Premier Miton as a partner than Assetco (with a fellow dour Scot involved).

[speedsgh] 23/11/2021 08:45

Here is the Premier Miton Group rns proposing an all-share offer subject to both the completion of the Solutions business disposal and return of net cash proceeds to R&M shareholders.



Premier Miton Group plc ("Premier Miton") notes the recent media speculation in relation to River and Mercantile Group PLC ("River and Mercantile") and confirms that it has approached the Board of River and Mercantile to explore potentially acquiring the entire issued and to be issued share capital of River and Mercantile (the "Proposal") through the issue of shares.

Any combination with River and Mercantile would be conditional on, inter alia, the successful completion of the proposed sale of its Solutions business to Schroders and the subsequent distribution of the net cash proceeds to River and Mercantile's shareholders.

Premier Miton is an established, well-capitalised and profitable fund management operation, with a strong balance sheet and attractive dividend policy. Premier Miton believes the scale and synergy benefits arising from a combination with River and Mercantile would drive value accretion for both sets of shareholders.

Premier Miton's management team is experienced in assessing and executing strategic opportunities and has recent and relevant integration experience following its own successful merger of Premier Asset Management Group and Miton Group in 2019.

Premier Miton has been assessing the merits of a combination with River and Mercantile for a period of time and believes the scale and cultural alignment between the respective businesses would deliver a balanced and resilient business across a diversified product offering, enabling employees of the combined businesses to maximise their potential.

This announcement does not amount to a firm intention to make an offer under Rule 2.7 of the Code and there can be no certainty that any transaction will ultimately be forthcoming.

Premier Miton looks forward to continuing its positive engagement with the River and Mercantile Board.

[spectoacc] 23/11/2021 07:29

AssetCo too - well done RIV holders.

[wee jimmy] 23/11/2021 00:37

Premier are absolute sharks trying to grab the £200m+ cash on RIV’s balance sheet. Clear off. That money is due to RIV’s shareholders.

[speedsgh] 22/11/2021 23:26

Premier Miton approaches River & Mercantile about asset management merger - https://news.sky.com/story/premier-miton-approaches-river-and-mercantile-about-asset-management-merger-12475977A combination of London-listed Premier Miton and River and Mercantile's asset management arm would create a business with more than £18bn of assets, Sky News can reveal...... City sources said on Monday that Premier Miton - itself formed from the merger of two smaller fund management companies - was "serious" about its interest in a tie-up, which would be structured as an acquisition of R&M.It was unclear whether the discussions were sufficiently advanced to oblige the two sides to confirm them in separate stock exchange announcements...

[spectoacc] 05/11/2021 09:05

Thanks @speedsgh

[speedsgh] 05/11/2021 09:01

NOTE - Post #207 is being spammed across numerous threads...

HelloAmora - 5 Nov '21 - 08:58 - 207 of 207 (Filtered)

[speedsgh] 05/11/2021 08:57

Final Results -

Financial Highlights

· Fee earning AUM1 increased by 8% to £47.6 billion (2020: £44.2 billion) representing the seventh consecutive year of AUM growth;

· Underlying revenue2 down 2% to £67.9 million (2020: £69.4 million)

· Performance fees increased to £6.4 million (2020: £1.2 million);

· Statutory profit before tax increased 31% to £10.9 million (2020: £8.3 million);

· Adjusted underlying profit before tax3 down 3% to £12.2 million (2020: £12.6 million);

· Adjusted profit before tax4 increased 14% to £15.0 million (2020: £13.2 million);

· Adjusted basic EPS5 and statutory basic EPS increased to 13.96 pence (2020: 11.79 pence) and 9.79 pence (2020: 6.39 pence) per share respectively; and

· Total dividend for the year of 11.69 pence per share up 23%.

On the proposed sale of Solutions to Schroders...

· The Board will enter into a consultation with Shareholders on the use of the proceeds. It intends to return the majority of proceeds to Shareholders while retaining sufficient funds both to ensure that its existing business remains well capitalised and to facilitate its plans for the development of the asset management business;

· The Board plans to develop the ongoing asset management business to create and offer a broader range of high quality and value-added equity products, and in-demand alternatives and private market products, building on the Group's existing offering. It will initially focus this expanded offering through its existing distribution channels in UK wholesale and institutional markets, however it also intends to extend distribution to expand its addressable market;

· The Board will develop its detailed post-sale strategic plan over the coming months and will update shareholders on this plan as part of a full strategy, capital allocation and dividend policy update in the Spring of 2022.

2nd interim & final dividend payment details...

On 15 April 2021 an interim dividend of 3.89 pence was paid. The Directors have declared a second interim dividend of 4.48 pence per share to be paid on 10 December to shareholders on the register as at 19 November. The ex-dividend date will be 18 November 2021. The Directors are proposing to shareholders a final dividend of 3.32 pence per share which will take total dividends per share paid, declared and proposed for the year ended 30 June 2021 to 11.69 pence per share representing 80 per cent. of adjusted underlying profit after tax and 100 per cent. of performance fee profit after tax. The final dividend will be paid on 31 December 2021 to shareholders on the register as at 10 December 2021. The ex-dividend date will be 9 December 2021.

More on future dividend...

We recognise the importance of dividends to our shareholders. against the background of the sale of RAMIL and in order to provide Shareholders with some certainty for the year ending 30 June 2022, the Board confirms that it intends to pay at least the same cash ordinary dividend per share as for the year ended 30 June 2021.

[roughandtumbleone] 05/11/2021 07:30

Stunning set of results with dividend payments announced too

[speedsgh] 01/11/2021 16:36

Results to be released this Friday...

Notice of Results -

Further to the announcement on 26 October 2021, the Company announces that it will release its preliminary financial results for the year ended 30 June 2021 on Friday 5th November 2021.

[essentialinvestor] 01/11/2021 16:24

topvest, absolute quality call here, congrats and enjoy your gains.


I did not see the upside.

[essentialinvestor] 01/11/2021 16:24

topvest, absolute quality call here, congrats and enjoy your gains.

Did not see the upside here, duh!.

[roughandtumbleone] 27/10/2021 16:55

There?s some chunky trades gone through which is positive and the 2m trades have been from today and not delayed

[roughandtumbleone] 26/10/2021 18:17

TopvestLooking at this from someone with limited knowledge of RIV but purchased on the news as imo the market hasn't got the current valuation right in light of the Shroders news. There's a significant gap between what is likely to be returned to shareholders, what the company will hold to have a fully funded investment vehicle moving forward and what the new company will then be potentially worth.I've invested for that upside potential as even at 3.89GBP PS (another 1GBP from todays close) would give a MC of circa 50m once yoy remove todays deal and that part of RIV imo and from reading their reports is worth considerably more than that. Anyone have any further thoughts?

[topvest] 26/10/2021 14:37

They have sold the best part of the Group in my view, so the residual business is effectively an embryonic equity asset management business - I expect something may happen with Assetco next year given the interconnection.

[topvest] 26/10/2021 14:32

Its not a bad price overall in my view and has generated some shareholder value. Its also very good for management as they are being flipped into Schroders which must be good news for everyone involved and underlines the quality of the business and people. What happens now for the listed vehicle will be interesting.

[spectoacc] 26/10/2021 14:23

"Enterprise value to EBITDA multiple of 13.4x based on Solutions' EBITDA for the year ended June 2021"

Quite.

[topvest] 26/10/2021 14:20

You can't compare price per AUM to any of those listed as the revenue per £ of AUM is significantly lower for RIVs solutions business.

[speedsgh] 26/10/2021 14:00

RIV listed at 183p in June 2014 so, even after today's jump, the return over the past 7 years is pretty poor. Peaked around 390p at start of 2018 but has been largely downhill since. Let's hope today's news presages the start of a sustained improvement.

[speedsgh] 26/10/2021 13:49

I wonder if today's announcement has been holding back the release of the finals?

[gre] 26/10/2021 13:01

Looks like Schroders have bagged themselves a bargain. They are paying £230m to acquire £42bn of assets under management. Compare this with some other asset managers with similar market capitalisations:

Manager Market Cap AUM
Premier Miton £283m £13.9bn
City of London Investment Group £260m £8.3bn
Tatton Asset Management £316m £9.5bn

[roughandtumbleone] 26/10/2021 12:55

So at the current share price and after todays news, the market has assumed the company is going to keep circa 40m to keep the existing RMG going which seems high.At 3.20GBP it values RMG at the offer price and doesn't Aline any value to the rest of the business remaining as RMG.Thoughts anyone?

[topvest] 26/10/2021 11:10

Not sure what it means for any final dividend, but no doubt we will get an update on that very soon.

[topvest] 26/10/2021 11:08

It looks like any crystallisation of value, unless you sell in the market now, will be in the next tax year. Suits me.