Source - RNS
RNS Number : 6161J
European Wealth Group Limited
13 September 2016

13 September 2016

European Wealth Group Limited

("European Wealth", or "the Company", or the "Group")

Acquisition & Issue of Equity


The directors of European Wealth (AIM: EWG, EWGL), the growing wealth management group, are pleased to announce the acquisition of CIMCO Partners Management Limited, ("CPML") which manages the G20 Absolute Return fund which is based in Gibraltar for a maximum consideration of £750,000 ("the Acquisition").



CPML currently has approximately $22 million of funds under management. The Acquisition adds a third fund to European Wealth's in-house range and by offering an investment style that is not currently offered within the Group's portfolio it broadens the range of equity investment styles available ahead of the launch of an institutional equity service planned for later in the year.


European Wealth has entered into a binding Share Purchase Agreement ("SPA") with Michael Mechas (the "Vendor") to purchase CPML for a total maximum consideration of £750,000. The initial consideration of £500,000 is payable immediately on completion and will be satisfied by the issue of 909,091 of new ordinary shares of 5 pence each at a price of 55p ("Ordinary Shares") (the "Initial Consideration Shares"). There is, depending on the gross profitability of CPML, further deferred consideration which may become payable approximately 12 months after completion of up to a maximum of £250,000, also to be satisfied by the issue of further new Ordinary Shares.


Share subscription

The Vendor of CPML, Michael Mechas, will be joining European Wealth as a result of the Acquisition and will continue in his position as lead investment director of the G20 Absolute Return fund. He will join European Wealth's investment committee and, pursuant to the terms of a consultancy agreement between Michael and European Wealth Group Limited, will work with the executive team to identify international acquisitions, reporting to the Group Chief Executive (as Head of International Corporate Development, Europe and Americas). Michael is also subscribing directly in new ordinary shares in the Company for 454,545 new Ordinary Shares at a price of 55 pence per Ordinary Share (the "Subscription Shares").


Application has been made for the Initial Consideration Shares and Subscription Shares, together a total of 1,363,636 new Ordinary Shares, to be admitted to trading on AIM. It is expected that the dealings in these new Ordinary Shares will commence on AIM on or around 19 September 2016 ("Admission").


Following Admission, the Company will have in issue 24,810,481 Ordinary Shares ("Enlarged Issued Share Capital"). The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of Ordinary Shares with voting rights in the Company will be 24,810,481.


Also, following Admission, Michael Mechas will hold 1,363,636 Ordinary Shares representing approximately 5.5 per cent. of the Company's Enlarged Issued Share Capital.


John Morton, Group Chief Executive, commented "I am delighted to announce the acquisition which further strengthens our position as a broad based and established wealth manager and look forward to Michael joining the investment team and supporting the growth of the Company."

Michael Mechas, MD of CPML commented "I am pleased to be joining a forward looking and expanding wealth management business that has a focus on investment performance."




 For further information, please contact:


European Wealth

John Morton, Group Chief Executive

020 7293 0733

Panmure Gordon

Fred Walsh / Alina Vaskina

020 7886 2500

Newgate Communications

Alistair Kellie / Adam Lloyd / Ed Treadwell

020 7680 6550


Notes to Editors

European Wealth 

European Wealth Group Limited (AIM: EWG, EWGL) is the holding company for the growing wealth management business, European Wealth Management Group Limited. Having commenced trading in 2010, European Wealth has two operating divisions, European Investment Management Limited ("EIM") and European Financial Planning Limited ("EFP") with circa £1.4 billion of AUM under influence and over 80 staff. Both are regulated by the FCA and were established to be RDR compliant from the outset, EIM opting for Restricted Adviser status and EFP for Independent Adviser status. Today the Group's head office is in London with an expanding network of offices both in the UK and continental Europe. Core services offered by the Group are financial planning, corporate pension advisory and investment management in both equity and fixed interest instruments. For further information on European Wealth's wealth management and financial planning services, please go to

This information is provided by RNS
The company news service from the London Stock Exchange