20th Oct 2014 07:33
LONDON (Alliance News) - Close Brothers Group PLC Monday said it has sold its securities business in Germany to investment banking and capital management company Oddo & Cie for EUR46 million, with the proceeds to be reinvested into the FTSE 250 merchant bank's core businesses of lending, wealth management and securities trading in the UK.
In a statement, Close Brothers said it expects to record a one-off profit on disposal of Close Brothers Seydler Bank AG of about GBP10 million.
Based in Frankfurt, Seydler provides equity and debt capital markets services, securities trading and research primarily in German small and mid-sized companies. In the financial year ended July 31, Seydler reported a profit after tax of GBP5 million.
The final amount that will be received for Seydler is subject to adjustment based on its net assets upon completion of the deal, Close Brothers said.
According to Oddo & Cie, the acquisition, which will be renamed Oddo Seydler, enables it to expand into Germany. Oddo & Cie describes itself as the first independent broker on French midcaps.
Close Brothers Seydler's and Oddo Securities' research teams will follow 400 companies, of which 196 are French, 143 are German and 67 are from other European countries, according to Oddo & Cie, which it said will give it the market lead on French and German midcaps.
Although Oddo already has a presence in Germany thanks to the sales of its Oddo Asset Management funds through a Frankfurt-based office, it now wants to develop the whole of its investment banking activities in this country with Oddo Seydler, in a move to lay the foundations for a Franco-German bank.
The transaction requires regulatory approval in Germany.
Close Brothers shares were Monday quoted down 0.4% at 1,342.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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