Sanlam Limited has acquired Merchant Securities Group
Lincoln International (“Lincoln”), a leading global mid-market investment bank, advised South African Sanlam Limited (“Sanlam”) on the recommended cash offer for AIM-listed Merchant Securities Group plc (“Merchant”) by its U.K. subsidiary Sanlam Private Investment Holdings U.K. Limited (“SPIH”). This transaction represented the first takeover offer of a financial services firm following material changes to the U.K. Takeover Code, effective from 19 September 2011. In addition, the acquisition also required regulatory approval by both the U.K.’s Financial Services Authority and Sanlam’s regulator, the South African Reserve Bank.
The offer price of 22 pence in cash valued the entire issued and to be issued ordinary share capital of Merchant at £12.2 million. To support the transaction, Lincoln secured irrevocable undertakings covering 31% of Merchant shares. In addition, terms were agreed with the management team of Merchant to exchange a majority of their existing shareholding for 25% of the shares in SPIH. As these arrangements fall under Rule 16 of the takeover code, Rule 16 opinions as well as a General Meeting were required to secure shareholder approval for the proposed arrangements.
Merchant provides a range of financial services to private clients, institutions and small businesses. Its advisory and execution services will be an important building block in expanding the capabilities of Sanlam’s existing U.K. operations, whilst the stockbroking, corporate finance, private equity and wealth management activities of Merchant will complement Sanlam’s wealth management activities and should lead to cross-selling opportunities. Sanlam expects increasing demand for a global wealth offering from its South African clients, because of the relaxation and potential abolition in due course of exchange controls.
Meet our Senior Team
View More Transactions
Lincoln International is pleased to announce that Turf Design has been sold to Armstrong World Industries (NYSE: AWI), a leading provider of ceiling and wall solutions for commercial and residential construction end markets
Lincoln International has advised Airsweb on its sale to EcoOnline, a Norway-based company backed by Goldman Sachs, Summa Equity and Viking Venture
Lincoln International is pleased to announce that UAS Laboratories LLC, a portfolio company of Lakeview Equity Partners, LLC, has been sold to Chr. Hansen Holding A/S (CPSE:CHR), a leading, global bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries
Lincoln International is pleased to announce that Sparton Corporation, a portfolio company of Cerberus Capital Management, L.P. (together with its affiliates, “Cerberus”), has sold its manufacturing and design services division (“MDS”) to One Equity Partners