WH Ireland in Blue Oar deal

STOCKBROKER WH Ireland has agreed a £16.2m takeover over deal with its AIM-listed rival, Blue Oar.

WH Ireland, which has an office in Leeds, said the enlarged group would have a number of competitive advantages as a leading AIM adviser with a significant number of corporate clients as well as a strong position in the Australian market.

The deal represents a 197% premium to the closing price of 3.25p per Blue Oar Share last Friday.

London-based Blue Oar’s biggest shareholder, Evolve Capital, which has a 64.9% stake, said it will vote in favour of the merger.

Blue Oar’s results for the six months to 30 June 2008, showed a loss before tax of £1.6m, its cash balances are in excess of £13m.

WH Ireland, which is headquartered in Manchester, is one of the UK’s biggest independent regional stockbroking houses.

In the six months to May 31, turnover was £16.2m and pre-tax losses were £685,000.

Richard Ford, chief executive of WH Ireland, said: “Blue Oar would be an excellent strategic fit for WH Ireland, strengthening our core activities of institutional investment banking, asset management and private client stockbroking.

“An offer on these terms would allow Blue Oar shareholders to retain an interest in a financial services organisation with an excellent platform for growth.’

Blue Oar chief executive Justin Lewis added: “We are delighted to have agreed the terms of a possible offer with WH Ireland. The proposal provides a significantly enhanced platform to take advantage of dislocation amongst our competitors whilst ensuring we have the financial and operational resources to manage the combined business through the current downturn.

“In addition it provides an attractive route forward for all the Blue Oar shareholders, clients and employees.”

The long-mooted deal, which is subject to shareholder approval, is expected to be completed in June.