London player decides not to launch takeover bid for Frenkel Topping
Harwood Capital has decided not to proceed with a possible offer for Salford-based financial services firm Frenkel Topping.
The London-based financial group confirmed that it does not intend to make an offer in an update to the stock market today.
Frenkel Topping revealed on January 28, that it had received a preliminary approach from Harwood which could lead to an offer for its entire issued capital, following recent share price movement.
The board confirmed that discussions regarding a possible offer took place between the parties, but that they have now been terminated.
It also confirmed that full year results to December 31, 2019 are in line with management expectations.
Assets under management (AUM) increased by 15% to £897.9m as at December 31, 2019, and revenues are expected to exceed £8.5m.
The company’s assets on a discretionary fund management basis, through Ascencia Investment Management, were up strongly by 31% to £399m, compared with £302m at December 31, 2018, reflecting confidence in Ascencia’s investment stewardship.
Frenkel Topping said it has made a robust start to the new financial year, with January being a record month for new business wins since 2010.
It continues to build on this strong momentum, winning substantial AUM mandates and generating new business income from its expert witness work, thereby positioning the company favourably for financial year 2020.
Frenkel Topping chief executive, Richard Fraser, said: “We have made significant progress in the last two years and delivered excellent results; with AUM at a record high and a healthy pipeline of new business wins, we are strongly positioned to continue delivering further growth and value for our shareholders.
“The board has a fiduciary duty to look at any serious interests in the business and it is a testament to the company and its achievements that we received this interest.”
