AFH Financial to be taken over by US private equity firm in £225m deal

Under the terms of the deal, Cortina Bidco, a newly-incorporated company indirectly controlled by funds managed by Flexpoint, will pay 463p a share in cash.

AFH said its independent directors, who have been advised by Keefe, Bruyette & Woods, intend to recommend the deal, which they deem to be "fair and reasonable".

The company’s chief executive officer, Alan Hudson, said: "Since our IPO in 2014, AFH has grown to become a leading brand in the financial planning-led wealth management market. The executive directors and I have always sought to deliver on our strategy of organic and M&A-led growth, but in recent years this has been curtailed by being an AIM-quoted company.

"We believe the offer reflects our strong track record of increasing shareholder value, Flexpoint's endorsement of our strategy and confidence in the continued success of AFH, as well as further investment required in the business."

At 1230 GMT, AFH shares were up 14.3% at 454.28p.