Brewin Dolphin acquires Investec’s Irish wealth business

On Friday, May 10th, Britain’s Brewin Dolphin announced that it has reached an agreement to buy Investec’s Irish wealth business for a reported sum of 44 million euros ($49 million) in a cash deal.

Brewing believes that this deal would make the company one of Britain’s top-three wealth managers.

Speaking on the deal, Investec stated that it had decided to sell off the company due to modifications in its business model as a result of Britain’s planned exit from the European Union, Investec also further said that this deal would not affect any of its other Irish Businesses.

Meanwhile, Brewin also issued a separate statement in which it said that it seeks to raise 60 million pounds ($78 million) in a share placing in a bid to bolster its capital position and support with funding the deal after a string of other acquisitions over the past 12 months.

Brewin further said the completion of the Investec deal as planned in the second half of 2019 was not part of the contingency, however, shares will be placed with institutional investors at a price of 305 pence per share.

As per reports, in comparison to the closing price of 321 pence on May 9th, the placing price on Friday, May 10th represents a discount of 5 percent.

In a statement, Brewin revealed that it faced a dip in its first-half managed funds to 42.4 billion pounds, in comparison to 42.8 billion pounds at the end of 2018, citing market losses offsetting net inflows of new cash.

As per reports, during the six months to end-March, pretax profit for Brewin dropped by 12.9 percent to 29.7 million pounds, as the interim dividend remained flat at 4.4 pence per share.

 

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