WH Eire, the wealth administration group, is in talks about an all-share merger with Group, one other London-listed operator within the sector.
Sky Information has learnt that the 2 corporations are in superior discussions a few deal that might worth WH Eire at greater than 4p-per-share – roughly eight occasions the worth of a rival transaction which was voted down by its shareholders final month.
Sources mentioned the deal, if accomplished, would create a bigger participant within the UK wealth administration market, though the businesses are relative minnows with a mixed market capitalisation of simply £20m.
Each WH Eire and Group declined to remark.
The worth that the possible deal locations on WH Eire’s inventory could immediate questions from its shareholders about why a transaction value a fraction of its worth obtained a suggestion from its board and advisers.
Final month, Sky Information revealed that the £1m sale of WH Eire’s wealth administration division to Oberon Investments was getting ready to collapse after a gaggle of buyers moved to dam it.
WH Eire’s wealth arm has about £830m of property underneath administration, whereas Group has complete property underneath administration or administration of greater than £1bn.
The previous’s largest shareholders, in accordance with its web site, embrace TFG Asset Administration, which owns 29.9%, the distinguished Metropolis determine Hugh Osmond, who holds slightly below 10%, and Melvin Lawson, proprietor of a 9.7% stake.
The board of WH Eire is chaired by Simon Moore, who additionally chairs LV Monetary Companies, the life insurance coverage mutual.
