LONDON: The Board of Tavistock Investments has confirmed an agreement to sell two of its subsidiary businesses, Tavistock Partners Limited (TPL) and Tavistock Estate Planning Services Limited (TEPS), to The Saltus Partnership Holdings LLP (Saltus) for up to £37.75 million.

Tavistock will sell 100% of the issued share capital of TPL and TEPS to Saltus for a cash consideration of up to £37.75 million. This includes approximately £10.97 million payable upon completion, subject to adjustments, a performance-related deferred consideration of up to £15.75 million, and around £11.03 million payable immediately after completion to discharge intragroup debt.

The consideration represents a 211% premium on Tavistock’s market capitalisation as of the market close yesterday. The sale constitutes a fundamental change of business under Rule 15 of the AIM Rules for Companies and requires shareholder approval. It is also subject to change of control approval from the Financial Conduct Authority (FCA).

The net proceeds from the sale will not be returned to shareholders. Instead, Tavistock plans to use the funds for working capital, potential future acquisitions, and possibly to repurchase the company’s ordinary shares.

This strategic move aims to provide Tavistock with significant working and development capital, enabling the company to optimize its balance between regulatory risk and commercial reward.

Brian Raven, Tavistock’s Chief Executive, commented: “The Disposal enables us to realise a substantial profit on our investment in the businesses involved, providing us with significant working and development capital. This will enable the continued reshaping of the Group to optimise the balance between regulatory risk and commercial reward. I would like to thank Malcolm Harper and his team for their contribution to Tavistock and wish them every success.”

Jon Macintosh, Saltus Managing Partner, said: “We are delighted to welcome Mal and his team on board. We are impressed by both the growth record of the business and the quality of care it provides to clients.”

Tavistock Investments has acquired Ireland based Precise Protect for £7.0mn