Press Releases
iimia MitonOptimal merger with Midas Capital Partners creates leading UK multi-asset management company 12/02/2008
iimia MitonOptimal plc (iMO), the AIM listed company encompassing fund management, wealth management and corporate services today announces a proposed merger with Midas Capital Partners, a leading fund management company based in Liverpool:
- iimia MitonOptimal to acquire the entire issued share capital of Midas for a consideration of £100.3 million
- Consideration to be satisfied by way of 27,500,129 new ordinary shares and payment of approximately £59 million in cash
- Expected to be earnings enhancing in 2009
- To finance part of cash consideration, iMO proposes to raise £10.5 million by way of a placing of 7,000,000 shares at 150p per share. Balance of cash consideration will be funded out of iMO’s existing cash resources and new £40 million borrowing facilities from Bank of Scotland
- Merger creates a leading multi-asset fund management business with £2.9 billion assets under management and advice
- Enlarged Group will have one of the best resourced and experienced team of fund managers operating in the multi-asset fund management sector
- Senior management and staff of Midas committed to success of enlarged Group – becoming substantial shareholders
- Senior management and staff of Midas demonstrate confidence in investment products with commitment to invest at least £20m
- Merger subject to shareholder approval at an Extraordinary General Meeting to be held on 6 March 2008
- Proposed change of name to Midas Capital plc
- Changes to board of directors
Michael Phillips, Chief Executive of iimia MitonOptimal plc, said:
“We are excited about the future following the merger with Midas Capital Partners, one of the fastest growing fund management businesses in the UK. The merged group will be a leading multi-asset fund management company with one of the best resourced and most experienced investment teams operating in the UK.
“With excellent long term performance across the product range, we believe the merger positions us to take advantage of the growing demand for reduced risk and multi-asset investment products.”
Simon Edwards, Chief Executive of Midas Capital Partners, said:
“We are delighted with the progress we have made since inception in 2002 which has been based on a simple business model and strong investment returns since launch. The merger with iimia MitonOptimal represents a new chapter in our history and provides an infrastructure which will enable a very strong investment team to focus on achieving good investment performance for clients. Our confidence in the investment products of the merged group is demonstrated by the Midas management team’s commitment to reinvest a substantial proportion of the cash received, at least £20m, into these products.
“With the depth and experience of talent within the merged group, we view the future with optimism and I look forward to working with Mike Phillips and his colleagues to build on the success which each business has achieved to date.”
