Kingswood makes second deferred payment for Sterling Trust acquisition

Wealth and investment manager Kingswood has made the second deferred consideration payment of £5.275m for the acquisition of Sterling Trust, it announced on Thursday, which it made in June 2020.

The AIM-traded firm said a portion of the cash proceeds from the issue of convertible preference shares on 31 December last year had been used to make the deferred consideration payment.

“The convertible preference shares were issued under the terms of the company's convertible preference share subscription agreement with HSQ Investment, originally announced on 12 September 2019,” the board said in its statement.

“HSQ Investment is a wholly-owned indirect subsidiary of funds managed or advised by Pollen Street Capital.

“The total number of irredeemable convertible preference shares held by Pollen Street is 77.4 million shares, at an issue price of £1 each.”

Reporting by Josh White for Sharecast.com.