River and Mercantile (RIV) shares zoom 12%: Is the stock a buy now?

Be the First to Comment Read

River and Mercantile (RIV) shares zoom 12%: Is the stock a buy now?

Follow us on Google News:
 River and Mercantile (RIV) shares zoom 12%: Is the stock a buy now?
Image source: phoghan, shutterstock.com

Highlights 

  • River and Mercantile Group has received preliminary approaches for a possible takeover from competitors - Premier Miton Group Plc and AssetCo Plc.
  • In October, River and Mercantile announced a deal to sell its pensions division to Schroders for £230 million ($316.30 million).
  • As per the UK acquisition rules, AssetCo and Premier Miton would be required to make firm bids for the shares of River and Mercantile by 21 December 2021.

The shares of River and Mercantile Group Plc (LON: RIV) were trading at GBX 320.00, up by 12.28%, at 11:41 AM BST on 23 November 2021 on reports that the company has been approached by Premier Miton & Asset Co. for a potential takeover. The company’s market capitalisation currently is £243.54 million.

The UK-based fund management firm - River and Mercantile Group later confirmed that the company had received preliminary approaches for a possible takeover from competitors - Premier Miton Group Plc (LON: PMI) and AssetCo Plc (LON: ASTO).

The completion of the potential deal will be based on the condition that River and Mercantile complete the planned sale of its pensions business. River and Mercantile pensions business sale was a part of its strategy to streamline operations, reduce costs and compete with rivals offering competitive packages.

River and Mercantile plans to sell its pensions business

In October, River and Mercantile announced a deal to sell its pensions division to Schroders Plc (LON: SDR) for £230 million ($316.30 million), aimed at enhancing its focus on its core wealth management business. The company’s wealth management business manages assets worth £3.4 billion.

The confirmation

River and Mercantile Group is an advisory and asset management company that provides services related to fiduciary and fund management. The company operates through Derivative Solutions, Fiduciary Management, Advisory and Equity Solutions divisions.

Both Premier Miton and AssetCo have separately confirmed their desire to take over River and Mercantile’s business. Premier Miton currently manages £13.9 billion worth of assets and was exploring the possibility of a buyout of River and Mercantile through the share issuance.

While on the other hand, AssetCo currently holds about 5 million shares in River and Mercantile, which represent nearly 5.85% of the company’s voting rights.

As per the UK acquisition rules, AssetCo and Premier Miton would be required to make firm bids for the shares of River and Mercantile by 21 December 2021.

Disclaimer

Featured Articles