Investec plc (“Investec Group”) has recently announced that it has successfully received all required regulatory clearances for the much-anticipated combination of Investec Wealth & Investment Limited (“Investec W&I UK”) and Rathbones Group Plc (“Rathbones”). This significant development brings the two financial powerhouses one step closer to creating a formidable strategic partnership in the UK wealth management sector.
The announcement on 4 April 2023 had unveiled the ambitious all-share combination plan between Investec W&I UK and Rathbones, a move aimed at enhancing their client offerings and bolstering their position in the competitive wealth management landscape.
The completion of this merger, now expected to occur on 21 September 2023, is subject to two primary conditions. Firstly, Investec Group is eagerly awaiting approval from the Financial Conduct Authority and the London Stock Exchange to admit the Consideration Shares to the premium listing segment of the Official List and to commence trading on the London Stock Exchange’s Main Market for listed securities. Secondly, completion is dependent on the absence of any material adverse change concerning either Rathbones or Investec W&I UK.
Upon completion, Investec Group will own 41.25% of the economic interest in the combined group’s enlarged share capital, along with 29.9% of voting rights. This underscores Investec’s strong commitment to the UK wealth management sector and highlights the confidence they have in the long-term potential of the partnership.
The combination of Investec W&I UK and Rathbones is expected to create a compelling proposition for clients, as both companies bring unique strengths and capabilities to the table. The collaborative approach will allow for more comprehensive banking and wealth management services for clients of both groups, making them more competitive in a rapidly evolving financial landscape.
A Look at the Enlarged Rathbones Group:
| Company | Share Code | ISIN | Percentage of Economic Interest | Voting Rights Percentage |
|---|---|---|---|---|
| Investec Group | INVP | GB00B17BBQ50 | 41.25% | 29.9% |
| Rathbones Group Plc | INL | ZAE000081949 |
The combination of the two entities has been closely watched by investors and industry analysts alike, with expectations running high for the potential synergy and growth it could generate. Both Investec Group and Rathbones have built a solid reputation in the wealth management sector, and this merger could create a powerhouse with enhanced capabilities and broader reach.
Investec Group’s focus on the UK wealth management sector aligns with their long-term strategy, and the successful completion of the combination will strengthen their foothold in this key market.
Forward-Looking Statements and Cautionary Notes:
The announcement contains forward-looking statements, beliefs, or opinions about the potential outlook for the Enlarged Rathbones Group. While these statements reflect Rathbones and Investec Group’s beliefs and expectations, they are subject to risks and uncertainties that could cause actual results to differ materially. Investors are cautioned not to place undue reliance on these forward-looking statements due to the inherent uncertainties involved.
Investment Advisory and Financial Support:
Investec Group has retained the services of Fenchurch Advisory Partners LLP as its exclusive financial adviser for the combination. Fenchurch, authorized and regulated by the Financial Conduct Authority, is exclusively advising Investec Group and will not be responsible to anyone else for providing protections or advice regarding this transaction.
Additionally, Investec Group has engaged Investec Investment Banking as its financial adviser exclusively for this transaction. Investec Investment Banking, authorized and regulated by the Prudential Regulation Authority and the Financial Conduct Authority, will solely provide financial advice to Investec Group and not to any other party in connection with this announcement.
Conclusion:
With all regulatory clearances secured, the Investec W&I UK and Rathbones combination is on track to create a new chapter in the wealth management sector. Investors and clients of both entities eagerly await the completion on 21 September 2023, anticipating the synergies and benefits this strategic partnership will bring in the long run. The combined strength of Investec Group and Rathbones is expected to drive growth and innovation, offering clients an enhanced suite of banking and wealth management services. As this story unfolds, the financial industry will be closely monitoring the progress of this exciting merger.
