7th Oct 2021 15:28
(Correcting misattributed quote from Wednesday. Has since raised GBP78.9 million.)
(Alliance News) - JTC on Wednesday said it is to acquire US-based fund and structuring administration services provider SALI in a deal worth up to USD236.0 million.
JTC will pay an initial fee of USD204.5 million and up to USD31.5 million on performance targets. The initial USD204.5 million will be made up of USD192.2 million in cash and up to a maximum of USD12.3 million in shares.
In order to part fund the acquisition, JTC said Wednesday it would raise up to GBP80 million in a placing of ordinary shares, which would not exceed 10% of the current issued share capital of the company.
JTC said the deal is expected to complete at the end of October and stressed the placing is not conditional upon the completion of the acquisition. The company said that the net proceeds of the placing will be invested on a short-term basis while evaluating other acquisition opportunities, should the deal fall through.
"SALI is a business of exceptional quality and a clear leader in the growing IDF market. Their operations are highly complementary to our existing US footprint and their deep expertise will be a fantastic addition to our Group capabilities. As always, cultural alignment is vitally important to us and like JTC, they are committed to developing successful long-term relationships that span decades. We are excited to welcome the SALI team, their clients and partners to the JTC family," said JTC Chief Executive Nigel Le Quesne.
JTC on Thursday said it raised GBP78.9 million in a placing of shares sold at Wednesday's closing price.
The Jersey-based fund manager placed 11.0 million new shares for 718 pence each. It said the new shares should start trading on the London Main Marker on October 22.
The stock was up 5.7% at 759.00 pence on Thursday afternoon.
By Arvind Bhunjun; [email protected]
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