3rd Dec 2009 07:00
News release
3 December 2009
Midas proposed disposal of iimia Wealth Management division to Jardine Lloyd Thompson Group Plc
Midas Capital plc ('Midas'), the AIM quoted company encompassing fund management and wealth management, announces that it is in advanced negotiations regarding the disposal of iimia Wealth Management ('iWM'), trading as iimia plc, iimia Financial Planning Ltd and JK Miln & Co Ltd, to Jardine Lloyd Thompson Group Plc ('JLT').
In the 6 months to 30 June 2009, the iWM businesses contributed £0.46 million to Midas' consolidated profit before management charges, amortisation, exceptional items and tax on revenues of £2.9 million. The terms agreed in principle involve the payment of a cash consideration on completion of £7.25 million subject to adjustment based on the completion balance sheet. Completion is expected in January 2010.
A significant part of the net cash consideration after costs will be used to further retire the group's Preference share capital.
Colin Rutherford, Chairman, Midas, says:
"We are extremely grateful to our wealth management team for their contribution over the years. The combination with JLT presents their business with an exciting growth opportunity. With its expected completion in January 2010 we can focus, as planned, on fund management activities through our Midas and Miton brands."
A further announcement will be made once agreement has been reached on the final terms of the transaction.
For further information, please contact:
Colin Rutherford, Executive Chairman, Midas 07768 053 054
Fiona Kehily, Broadgate Mainland 020 7726 6111
Richard Vaughan/Matt Stoate, Kinmont 020 7087 9100
(Financial Advisor to Midas)
James Steel, Arbuthnot Securities Limited 020 7012 2000
(Nominated Advisor and Broker to Midas)
Web: www.midascapitalplc.com
Kinmont Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as financial advisor to the Company in relation to the matters referred to in this announcement and no one else and will not be responsible to any other person for providing the protections afforded to clients of Kinmont or for providing advice in relation to the matters referred to in this announcement.
Arbuthnot Securities Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as Nominated Adviser and Broker to the Company in relation to the matters referred to in this announcement and no one else and will not be responsible to any other person for providing the protections afforded to clients of Arbuthnot Securities Limited or for providing advice in relation to the matters referred to in this announcement."
Related Shares:
MGR.L