28 March 2013
UTILICO INVESTMENTS LIMITED
Acquisition of JO Hambro Investment Management by Bermuda National
Utilico Investments Limited ("Utilico") announces that Bermuda National Limited ("Bermuda National"), in which it currently holds a 45 per cent. interest, has entered into a sale and purchase agreement to acquire JOHIM CS Limited, the holding company of J O Hambro Investment Management ("JOHIM") and its affiliates, from Credit Suisse AG ("CS").
The total cash consideration is £50 million and post completion Bermuda National will own 62.5 per cent. of JOHIM's issued share capital with the balance owned by JOHIM's management and staff, who are investing together with Bermuda National. The acquisition remains conditional on Bermuda National receiving regulatory approval from the Financial Services Authority and its successors ("FSA"). It is anticipated that the acquisition will be completed during June 2013. Westhouse Securities Limited is acting as financial adviser to Bermuda National in relation to this transaction.
The acquisition will be funded by a combination of Bermuda National's existing cash, exercise of the Bermuda National bonus warrants by its major shareholders, JOHIM's surplus cash, debt funding, and investment by JOHIM's management and staff. Utilico will be investing approximately £10 million in Bermuda National through the exercise of warrants which Bermuda National recently allotted to its shareholders by way of a bonus issue. Following this exercise of warrants Utilico is expected to hold up to 49.5 per cent. of the enlarged capital of Bermuda National.
JOHIM is a London-based specialist investment manager which focuses on discretionary portfolio management for private clients, charities and institutions as well as offering a suite of in-house managed investment funds. JOHIM was founded by the Hambro family in 1986 and acquired by CS in 2001. Its head office is in St James's in London and it has over 100 employees including 25 experienced portfolio managers who have been with the business for a number of years. JOHIM is a well known UK private wealth asset manager and has historically produced strong investment portfolio performance for its clients. After completion JOHIM will continue to work closely with CS providing investment management services to CS clients.
As at December 31, 2012 JOHIM had Assets under Management ("AUM") of approximately £3.6 billion and total AUM and Assets under Control of approximately £4.8 billion. JOHIM's unaudited pre-tax income for the year ended December 31, 2012 was approximately £6.6 million on revenue of approximately £25.2 million and shareholders' funds of approximately £54.1 million.
The proposed acquisition of JOHIM is in line with Bermuda National's stated strategy to make corporate investments and acquisitions in the financial services sector. The proposed acquisition of JOHIM is an ideal fit for Bermuda National as JOHIM operates in the attractive wealth management industry and is complementary to Bermuda National's existing investments. In particular JOHIM, which is a significant acquisition for Bermuda National, should provide a number of synergistic opportunities for Bermuda National's other investments including Bermuda Commercial Bank and Westhouse Holdings.
For further information please contact:
ICM Investment Research Limited
Charles Jillings 01372 271486
Westhouse Securities Limited
Alastair Moreton/Darren Vickers 0207 601 6118
This information is provided by RNS