5th May 2020 15:41
(Alliance News) - Kingswood Holdings Ltd said Tuesday it has signed Heads of Terms to increase its interest in Manhattan Harbor Capital to 50% from 7%.
Kingswood will exercise its existing option to increase its interest in Manhattan Harbor, a US company that acquires, consolidates and manages independent broker dealers and registered investment advisers, to 20% from 7%.
In addition, following the closing of Kingswood acquisition of an 85% stake in US broker Chalice Capital Partners for USD4.0 million, this will increase Kingswood interest in Manhattan Harbor to a majority shareholding of 50%.
On completion, Manhattan Harbor will be renamed Kingswood US, which will be the business that leads the company's future US strategy, with 180 representatives, and key offices in new York, Atlanta and San Diego.
Kingswood first acquired a 7% stake in Manhattan Harbor in May 2019 for USD525,000 in cash and shares.
"Kingswood's enhanced investment in MHC will cement a key, strategic foothold in the largest global wealth and investment management market, differentiate us from our peers and support our aspirations of asset linking and cross-selling services. The investment will provide a significant base to potential further integration and a valuable support to Kingswood's US expansion plans," said Chief Executive Officer Gary Wilder.
Shares in Kingswood Holdings were down 3.0% at 16.00 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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