Share Plc (LON:SHRE) have agreed a £62 million takeover deal with Interactive Investor, as was confirmed this morning.
Share PLC, who own the Share Centre is an online stockbroker which places an emphasis on retail investors.
Gavin Oldham OBE, Executive Chairman of Share plc said: “I am delighted to welcome this combination of our businesses, designed to transform the prospects for individual share ownership and personal investment across the United Kingdom. Our share owners, employees and customers are well aware of my passion for egalitarian capitalism, not only right across society but also across generations. It delivers the economic freedom that comes from having a personal reserve of savings and investment, and a society at ease with itself: as owners, employees and consumers combine ownership with a responsibility for all.”
In this morning’s update, it was said that the deal will be paid in both cash and shares. 90% of the offer will be made in stock dealings whilst the remaining 10% will be rounded up in cash.
Shareholders were told that they will receive 4.1p in cash and 0.00084 of an Interactive Investor share per share in Share PLC held.
Interestingly, the price offered shows a 41% rise on the closing price of Share PLC at 19p on Friday.
As a result of this morning’s announcement, shares have surged by 13%.
Shares in Share Plc trade at 33p (+13.79%). 17/2/20 10:06BST.
Both firm noted that they share common beliefs and values to take the new merger deal forward, and Interactive Investor have said that they believe the deal will benefit shareholders and customers of the Share plc.
Commenting on the Offer, Richard Wilson, CEO of ii, said:
“We are delighted with this transaction. The firms’ shared values and combined strengths reinforce ii’s position as a leader in the retail investment services marketplace. With our fair flat fees we have built a strong and compelling alternative to percentage fees, in a business that puts the customer first.
Combining our individual strengths brings further scale and the opportunity to deliver enhanced value, service and customer experience to an enlarged customer base.
Our purpose is to help customers take direct control of their financial future, providing tools and support to make informed investing decisions. This transaction contributes significantly to that goal.”
Gavin Oldham also spoke at the firm’s AGM about the need to look at their strategic ambition, and transform the direction and size of Share Plc.
Oldham concluded: “At our Annual General Meeting in June 2019, I spoke of our major strategic ambition to transform Share plc ’s business over the coming years. We have to grow significantly in order to achieve this, not only in profitability but also in scale and in substance. That is why we have been prepared to investigate how others, who share our ambition for a more egalitarian form of capitalism, would work with us in order to achieve it. With our prospective new colleagues in ii we have discovered just such a meeting of minds, and a shared purpose for the future.”
Certainly this is an interesting piece of business for both parties, however considering the goals of Share this does fit in with their ambition to scale up and tap into a larger consumer base.
When the merger has been fully integrated, this certainly could be a shrewd piece of business for both firms.
