Investec offers £412m to acquire Rensburg Sheppards
South Africa based Investec has agreed to take over British wealth manager Rensburg Sheppards in a deal valuing the firm at £412m. According to some sources, the deal could be announced soon.
Investec already owns 48 per cent of Rensburg which it acquired more than five years ago.
The investment bank has reportedly offered 9 pounds per share to acquire the remaining 52 percent of the firm.
Stephen Koseff, chief executive of Investec said, "Rensburg Sheppards has been a good investment for Investec over the past few years and the proposal we have announced today is the natural next step for both businesses"
Rensburg purchased Carr Sheppards Crosthwaite from Investec five years ago and offered 47.7 per cent stake in the joint entity named, Rensburg Sheppards. The employees of the firm own the remaining 5% equity.
The deal shows Investec's intention of diversifying its sources of revenues and it could also expand asset management business with the Rensburg Sheppards unit. The assets under management for the firm rose 50 per cent to £43.4bn in 2009 with net fund inflows touching £4.5bn.
The shares of Rensburg rose 44 per cent and were trading at 871½p in the London market while the shares of Investec fell 2.9 per cent and were trading at 545½p. Investec is listed in London and Johannesburg markets.