16th Mar 2026 12:16
(Alliance News) - Liontrust Asset Management PLC on Monday unveiled an all-share deal to snap-up River Global PLC's asset management business.
The deal to acquire River Global Holdings Ltd, the holding company of the asset management business, is worth an initial GBP7.6 million. It will be funded through the issue of Liontrust shares. The initial sum excludes a mandate for European Opportunities Trust.
The deal has an additional consideration worth up to GBP2.1 million in Liontrust shares.
Liontrust will issue close to 3.0 million shares at a price of 255.87 pence each to fund the immediate GBP7.6 million consideration, and up to a further 820,722 shares at the same price for the GBP2.1 million adjustment contingent consideration.
River Global shares were up 41% to 4.75 pence each on Monday afternoon in London, while Liontrust shares rose 5.6% to 258.68p.
London-based Liontrust will integrate River Global's fund management activities into its own offering, and add River Global's Chair Martin Gilbert to its board as a non-executive director.
River Global's B shares, representing the company's 30% interest in the investment platform Parmenion Capital Partners LLP, are not part of the deal. River Global said it will become a cash shell on deal completion. It would mean River Global has a period of six months to make a reverse takeover or raise at least GBP6 million to be classed as an investing company under AIM rules.
The company has not yet decided if it will pursue a reverse takeover.
Liontrust said the acquisition will bring experienced managers into the firm, expand its assets under management by GBP2.72 billion to GBP24.43 billion, and broaden its client base.
"As well as adding scale in thematic Indian equities, Liontrust will also gain access to a physical investment presence in Asia for the first time through the team managing the India Capital Growth investment trust," Liontrust said.
The acquisition, which is expected to take effect by the end of August, is yet to obtain both regulatory and shareholder approvals, although River Global's shareholders representing a total of just over 39% of the company's issued capital, have already backed the deal.
"River Global and Liontrust are two highly complementary businesses and it makes perfect sense to bring them together", Gilbert said.
He added that "clients and people will benefit immediately from becoming part of a wider group, with powerful distribution and marketing resources that will accelerate the inflows we are seeing into our funds".
Liontrust Chief Executive Officer John Ions said: "The acquisition of River Global is an important step forward for Liontrust. River Global's investment capabilities are complementary to Liontrust's established processes and funds and combining them will create a stronger and broader platform for future growth. The enlarged business will diversify products, performance and the client base.
"River Global fund managers will benefit from Liontrust's brand and distribution that will provide them with a broader route to market both in the UK and internationally. Clients will benefit from Liontrust's market-leading service and the investment we have made in recent years in our operating model to ensure the integration is as smooth and quick as possible."
Separately, River Global said its pretax loss in the year ended September 30 stretched to GBP11.2 million, from GBP5.0 million. Revenue fell 12% to GBP12.2 million, from GBP13.8 million the year prior.
In the A share business, which excludes Parmenion, assets under management fell 15% to GBP2.35 billion at September 30 from GBP2.78 billion a year prior. In the B shares segment, it grew to GBP13.1 billion from GBP11.1 billion. The B share division includes its interest in Parmenion.
Looking ahead, it said: "We are under no illusion that market conditions will become less challenging near term. Interestingly, however, the effect of some of the global disruption during the year is to shine a light on the benefits of active asset management and demonstrate that the 'magnificent seven' are not invulnerable. We have seen an uptick in both performance and interest in some of our funds as a result."
By Martin Miraglia, Alliance News reporter
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