Middle East firm buys 23% stake in historic City firm

SHARES in one of the City’s oldest stockbrokers WH Ireland Group have soared after rumours were confirmed today that Kuwaiti European Holding Group was taking a 23% stake in the company.

The price of shares rose 33.7% to 135p yesterday after KEH announced its intention to buy into the business founded in Manchester in the 19th century.

News of the investment sparked rumours the investment vehicle of the Al Humaidi family may attempt a bid for the entire company.

WH Ireland chief executive Richard Killingbeck said: “The board and I are very pleased to welcome our new shareholder in WH Ireland.

“KEH Group has an exciting plan for growth within its existing financial services companies in the Gulf states and the UK.

“WH Ireland expects to be able to help support this growth from both of its divisions and to benefit from the financial resources within KEH Group to develop and accelerate growth plans at the company.”

WH Ireland’s shareholder portfolio is dominated by a small number of big shareholders, including Conservative peer Lord Marland, some of whom are believed to be selling shares to KEH, which is the owner of Ebbsfleet football club in Kent.

Despite its reputation as a venerable firm, however,WH Ireland has been involved in regulatory difficulties, culminating in a £1.2m fine from the Financial Conduct Authority in February.

The FCA’s fine was so great that it erased WH Ireland’s profits, pushing it to a £300,000 annual pre-tax loss.

KEH has not commented.