European Wealth, the growing wealth management group, has acquired CIMCO Partners Management Limited, which manages the G20 Absolute Return fund which is based in Gibraltar for a maximum consideration of £750,000.
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 with Michael Mechas 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.