European Wealth to buy book of business from Towry Asset Management

AIM-listed European Wealth has agreed to buy certain assets of Towry Asset Management for up to £1m.

The integrated financial planning and wealth management group said it has entered into a binding business sale agreement to purchase a book of business and certain related assets.

The assets under management attributable to the transferring assets were approximately £120m as at the end of March. For the full year to the end of March, profit attributable to the transferring assets was around £0.2m.

In addition to the maximum consideration of £1m, European Wealth has agreed to pay Towry a further £200,000 for the benefit of a loan owing to it by a consultant who is transferring to European Wealth. The loan will be set off against any bonus due to the consultant for the 12 month period ending on 30 September 2017. If the bonus is less than £200,000, the remaining amount of the loan will be waived.

In order to satisfy the loan amount, the company plans to raise up to £300,000 through a direct share subscription for up to 600,000 new ordinary shares at 50p each.

Chief executive John Morton said: “This acquisition further strengthens the group's ability to offer integrated investment management and financial planning services across the UK and internationally. The addition of this book of business will be enhanced by our ability to offer direct international equity investment to our clients."

At 0812 BST, the shares were flat at 52p.