14th May 2015 06:56
LONDON (Alliance News) - Investment manager Brewin Dolphin Holdings PLC on Thursday said it has struck a deal to sell its Stocktrade execution-only division to Alliance Trust Savings, a division of investment trust Alliance Trust PLC, for GBP14 million in cash.
Edinburgh-based Stocktrade had assets under administration of GBP4.3 billion at September 28 last year, Brewin said, and posted a pretax profit of GBP1.3 million for the year to September 28, 2014.
Brewin expects the transaction to result in a net gain of GBP1 million, after accounting for all related costs, and intends to use the proceeds for general corporate purposes. It expects the sale will allow the company to achieve additional operational efficiencies which will offset the loss of Stocktrade's contribution.
"The sale of Stocktrade is a good result for shareholders, customers and colleagues. It is consistent with our strategy of streamlining and simplifying the Group's operations and will help further enhance shareholder value by allowing us to continue to focus on growing our core wealth management business," said Brewin Chief Executive David Nicol.
"Stocktrade is a great strategic fit for ATS, giving us access to new customers, an increase in assets and the opportunity to build a strategic partnership capability. It also gives us the ability to align a traditional stockbroking business with our innovative, scalable and cost-effective approach by offering customers online access alongside our in-house customer service team," said Alliance Trust Savings Managing Director Patrick Mill.
By Sam Unsted; [email protected]; @SamUAtAlliance
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