1st Apr 2021 09:01
(Alliance News) - Wealth management company Quilter PLC on Thursday proposed sale of Quilter International to Utmost Group Ltd, following a detailed strategic review.
Total consideration for the sale is anticipated to be GBP483 million, inclusive of a 5% interest charge on the base consideration of GBP460 million from January 1 to the completion of the sale, which is expected at the end of 2021.
Net cash proceeds of GBP450 million are expected from the sale after allowing for transaction costs. Quilter said it is currently minded to undertake a capital distribution to shareholders of the majority of the net cash proceeds.
Meanwhile, the residual portion of the net cash proceeds from the sale are expected to be used to fund selected growth initiatives and accelerate the next phase of optimisation, supporting revenue enhancement and further cost reductions, and thereby delivering operating margin improvements.
The sale will simplify Quilter, it said, and focus the company on its higher growth UK wealth management business.
Quilter shares were trading 3.8% higher in London on Thursday at 165.85 pence each, while in Johannesburg, the stock was up 3.6% at ZAR33.60 a share.
By Evelina Grecenko; [email protected]
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