Premier AM and Miton to merge into £11.5bn business 04 September 2019

Premier AM and Miton to merge into £11.5bn business

Set to complete in Q4

 

Premier Asset Management and Miton Group have agreed the terms of an all-share merger, which is expected to complete in Q4 and will see Miton shareholders own 33% of the combined group.

The merger, which is expected to be conducted through a court-sanctioned scheme of arrangement between Miton and its shareholders, values each Miton share at 56.74p, meaning Miton shareholders will own a third of the combined group following completion.

The combined asset manager, which will be renamed Premier Miton Group, will continue to trade on AIM. It is expected to have combined assets under management of £11.5bn, which the groups believe positions the business well for future growth.

Premier Miton Group's combined board will be drawn from both companies with Premier chairman Mike Vogel and Premier CEO Mike O'Shea made chairman and CEO respectively. Miton COO Piers Harrison will be the CFO of the new business.

Two Miton Directors - David Barron and Katrina Hart - will become non-exec directors on the board. Robert Colthorpe and William Smith will also remain as non-exec directors.

Among reasons for the merger the firm named a wider product range and greater scale; complementary investment capabilities with little overlap; enhanced distribution relationships with UK financial advisers, wealth managers and platforms; and a shared client-centred culture.

The groups also believe the merger will create greater financial strength for the combined business, with a more diversified revenue mix, access to economies of scale and a strong balance sheet. It is also expected to bring recurring pre-tax cost synergies of around £7m per year.

If the merger goes ahead, Miton is set to pay a special dividend of 4.9p. The merger is conditional on the approval of both Miton and Premier shareholders.