Acquisition to complete as NOMAD condition waived
In October, the boards of Birmingham-based stockbroker Arden Partners and Ince had announced an agreement had been reached on the terms of an all-share offer worth £10m.
The London Stock Exchange then notified Arden that its application for continued Nominated Adviser (NOMAD) status following the Change of Control, had been declined.
A Nomad advises a company when it lists on the Alternative Investment Market (AIM), as well as its continuing obligations once on market.
Now, Ince has waived the NOMAD condition to the deal and intends to complete the acquisition.
Completion of the acquisition will therefore mean that following the Change of Control, Arden will no longer be able to provide NOMAD services.
Although this is a significant change, Ince says that Arden’s reputation is primarily built around its ability to raise money for its clients and provide other broking and advisory services, and therefore the loss of its Nominated Adviser licence should not materially impact Arden’s brand and ability to engage new clients nor its ability to provide fundraising and corporate broking services.
The rationale for the acquisition of Arden remains the same, as it focuses on expanding the group’s client base and deal flow.
Arden will, therefore, seek the Court’s sanction of the deal and acquisition.
Arden also intends to seek an extension to the approval from the FCA of the Change of Control in accordance with section 185 of the FSMA, as announced on 21 January 2022, which is required for completion of the acquisition.
