6th Oct 2021 17:54
(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 it will raise up to GBP80 million in a placing of ordinary shares, which will 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.
The price at which the shares are to be placed will be determined at the close of the bookbuilding process, it noted. Numis Securities Ltd and Joh. Berenberg, Gossler & Co KG are acting as joint bookrunners in the bookbuilding process, which will begin with immediate effect.
"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 Chief Executive Officer Thomas Nieman.
The stock closed down 0.4% at 718.00 pence on Wednesday.
By Arvind Bhunjun; [email protected]
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