The Financial Services Authority (FSA) has granted permission to a stockbroking company to acquire an investment bank, it was announced yesterday (January 17th).
Westhouse Holdings plc is on course to takeover the subsidiary of Arbuthnot Banking Group plc, Arbuthnot Securities Limited, in a deal worth £1.9 million after receiving the seal of approval from the city regulator.
The parties were revealed to have agreed a merger last November, with completion of the transaction due to take place on January 20th.
According to FT Adviser, the deal includes a cash consideration of £1 million, as well as 1,250,000 ordinary shares of a Westhouse.
It will also feature a tranche of an existing perpetual convertible loan note of £350,000.
Last year was a reasonably successful period for Arbuthnot as it achieved profit before tax of an estimated £5 million, despite losses of £8 million for the subsidiary as it failed to get regulatory approval before the end of 2011, Share Cast said.
Posted by Tony Miller