LONDON, UK: The Board of AssetCo plc has submitted an indicative non-binding securities exchange proposal for the entire issued and to be issued share capital of River and Mercantile Group (RMG) that is not already owned by AssetCo.
The possible offer is made for the remaining River and Mercantile Group (RMG) asset management business post the sale of RMG’s Solutions business, and any offer made would be conditional on the completion of the sale of the solutions business.
The AssetCo directors believe that RMG Asset Management and AssetCo are highly complementary and that a combination of AssetCo and RMG Asset Management would create significant value for the combined group’s clients, portfolio managers, employees and shareholders.
The AssetCo directors also believe that there is material value in leveraging other elements of the AssetCo business and strategy to increase the value of RMG Asset Management and widen investor appeal.
Whilst negotiations between RMG and AssetCo regarding the structure of a potential deal are continuing, the indicative non-binding proposal to the Board of RMG may lead to a requirement for a reverse takeover pursuant to Rule 14 of the AIM Rules.
AssetCo currently holds 5 million River and Mercantile Group (RMG) shares representing approximately 5.85 per cent of its voting rights.
Martin Gilbert, Chairman of AssetCo and Deputy Chairman of RMG, has recused himself from the RMG Board for the purposes of discussions in relation to the Possible Offer.