Investec swoops for Rensburg Sheppards
STOCKBROKING and investment management firm Rensburg Sheppards has agreed an all-share £412m takeover from Investec.
South African group Investec, which is now a FTSE 100 member, already owns 47% of Rensburg Sheppards, which has offices in Leeds and Sheffield
Shareholders in Rensburg Sheppards will receive 1.63 Investec shares for each share they own. The offer values each Rensburg share at 916p, and the entire business at £412m.
The price is a 48% premium to yesterday’s mid price of 620p.
Investec said Rensburg Sheppards would become a part of its private client activities division.
Rensburg Sheppards was founded by Henry Rensburg in Liverpool in 1873, before merging in the 1970s with long-standing Yorkshire firm BWD. The current business was created in 2005 with the acquisition of Carr Sheppards Crosthwaite.
Investec said its current plans for Rensburg Sheppards do not involve “any material change in its executive management team, operating structure or commercial offering”.
Christopher Clarke, chairman of Rensburg Sheppards, said the deal was an “attractive outcome” for staff, clients and shareholders.
“The offer values Rensburg Sheppards at a significant premium to its current share price and the offer consideration is in the form of a more liquid FTSE 100 security.
“This combination is underpinned by a compelling fit and sees Rensburg Sheppards becoming part of a major and respected international financial services group.”
Stephen Koseff, chief executive of Investec, said: “Rensburg Sheppards has been a good investment for Investec over the past few years and the proposal we have announced today is the natural next step for both businesses.
“Investec’s wealth and asset management activities have grown strongly in recent times and we believe that Rensburg Sheppards will thrive as part of the Investec Group. We look forward to supporting Rensburg Sheppards and enhancing our strategic position by building an even stronger business in this core area of the market.”
