Investec PLC and Ltd said on Friday the all-share merger between its unit Investec Wealth & Investment Ltd and Rathbones Group PLC is expected to be completed this year.
The Sandton, Johannesburg-based financial services firm also said Rathbones shareholders had approved the merger at its general meeting on Friday.
It said the proposed deal is expected to be completed either late in the third quarter or early in the fourth quarter.
The merger subject to certain regulatory approvals, the group said.
Investec W&I UK and Rathbones first announced plans to combine early in April to create one of UK’s leading wealth manager.
Investec W&I UK includes Investec’s wealth and investment businesses in the UK and Channel Islands but excludes Investec Bank AG and Investec Wealth & Investment International (Pty) Ltd, both of which will remain wholly-owned subsidiaries of Investec.
The merger will create UK wealth manager with around £100 billion of funds under management and administration.
The enlarged Rathbones will remain an independent premium-listed company in London operating under the Rathbones brand with Investec as a long-term, strategic shareholder. It will continue to be led by Rathbones Chair Clive Bannister and Chief Executive Officer Paul Stockton.
Under the terms of the deal, new Rathbones voting and non-voting shares will be issued in exchange for 100% of Investec W&I UK’s share capital.
Following completion, Investec will have an economic interest in Rathbones’ enlarged share capital of 41.25% but its voting rights will be limited to 29.9%. Investec will receive both voting ordinary shares and convertible non-voting ordinary shares that may convert into ordinary shares on a 1-for-1 basis.
Existing Rathbones shareholders will have an economic interest of 58.75% and voting rights of 70.1%. The terms of the combination imply an equity value of about £839 million for Investec W&I UK.
Rathbones shares were down 0.5% to 1,839.48 pence Friday in London. Investec shares eased 1.7% to 436.20p in London. They lost 0.9% at R 103.69 in Johannesburg.
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