30th Sep 2014 17:28
LONDON (Alliance News) - Miton Group PLC Tuesday said it will pay 3.3 million shares and nearly GBP1.7 million in cash, or GBP2.9 million in total, as the first deferred payment for its acquisition of PSigma Asset Management Holdings.
The fund manager had announced the acquisition in July 2013, and had said the first deferred payment would be satisfied by issuing 8.1 million shares.
"The directors consider that the reduction in the number of Shares issued will be beneficial to shareholders," it said in a statement.
It had bought PSigma for up to GBP13 million, paying GBP5.25 million in cash initially. The total consideration was to be a mixture of cash and Miton shares and would be between GBP6.75 million and GBP13.0 million dependent upon the scale of PSigma's assets under management retained two years after the deal completed.
The first deferred tranche was to be calculated as 0.8333% of PSigma's assets under management in excess of GBP400 million capped at a maximum of GBP2.5 million. It was to be all shares.
The second deferred tranche will be calculated as 1.25% of PSigma's assets under management in excess of GBP400 million capped at a maximum of GBP3.75 million. Two-thirds of this consideration will be satisfied in cash with the balance satisfied by the issue of new Miton shares.
Miton Group shares ended down 2.3% at 37.00 pence Tuesday. News of the deferred tranche detail came after the market closed.
By Steve McGrath; [email protected]; @stevemcgrath1
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