LONDON: HSQ Investment Limited has announced an unconditional cash offer to acquire all remaining shares of Kingswood, valuing the shares at 7 pence each.
The offer, which values Kingswood at approximately £48.03 million, will be made through the issuance of an Offer Document and Form of Acceptance.
These documents are expected to be sent to shareholders within 28 days of the announcement. Once accepted, shareholders cannot withdraw their acceptance of the offer.
Recently, HSQ acquired all 144,125,262 shares held by KPI, increasing its ownership of Kingswood to 89.39%. Following this acquisition, HSQ has requested the delisting of Kingswood from AIM, with the cancellation likely to take effect around April 17, 2025.
Kingswood shareholders will receive 7 pence in cash for each share under the terms of the offer. HSQ believes the offer provides shareholders a chance to cash out their investments, as the company foresees limited future liquidity for Kingswood shares.
Kingswood is an international wealth and investment management group, offering financial planning and investment services. Despite its growth in assets under management and revenue, the company has faced challenges, including sector headwinds and rising debt. HSQ’s financial backing has been critical in supporting Kingswood’s operations and acquisitions. However, HSQ has stated its preference for Kingswood to operate as a private company with HSQ as the sole institutional shareholder.
The independent Kingswood directors have acknowledged the lack of alternative funding options and believe the HSQ offer provides the best value for shareholders, especially considering the planned delisting from AIM. Shareholders who do not accept the offer risk becoming minority shareholders in an unlisted company.