AssetCo has reached an agreement to acquire the entire issued share capital of SVM Asset Management for a total consideration of approximately £10.7m.
The consideration will be satisfied by the issue of up to £9m, 1% fixed rate unsecured convertible loan notes in AssetCo and, subject to balance sheet adjustments, approximately £1.7m in cash, to be paid on completion.
The notes may, at the option of the company or a majority of the holders, be converted into fully paid ordinary shares of 10p each at an effective issue price of £14.50 per share.
