finnCap Limited which will become a wholly owned subsidiary of a newly incorporated public company to be named finnCap Group Plc
PROPOSED ACQUISITION OF CAVENDISH AND INTENTION TO FLOAT
finnCap Limited (“finnCap”), a leading adviser and broker to ambitious growth companies both public and private, announces its proposed acquisition of Cavendish Corporate Finance LLP, and its subsidiary Cavendish Corporate Finance (UK) Limited (together “Cavendish”), and its intention to seek application for admission of the entire issued share capital of the new holding company, finnCap Group Plc (the “Company”), to trading on AIM, a market of the London Stock Exchange, (“Admission”). Admission is currently expected to occur in early December.
finnCap’s core focus is on providing the financial services expertise to help ambitious companies grow, whether public or private. finnCap’s principal activities are equity capital market focused and consist of advising companies, promoting them to investors and accessing capital on their behalf whilst providing trade execution services to a broad base of institutional clients. These activities are delivered through teams specialising in corporate finance and broking, equity sales, trading and market making and research.
Since 2007, finnCap has demonstrated its fundraising and advisory capabilities and has raised over £2.6 billion for its clients. finnCap is retained as financial adviser or broker to 125 quoted companies.
Conditional inter alia on Admission, the acquisition of Cavendish, a leading independent M&A adviser to the UK mid-market will bring into the Group a capability in sell-side M&A advisory services, exit planning and debt advisory services. Cavendish was founded in 1988 and has a team of 40 people primarily focused on sell-side M&A advisory services on mandates relating to companies with an enterprise value of up to £500 million. In the years ending 31 March 2017 and 2018 it advised on a total of 24 completed company sales. The directors of finnCap believe there is a compelling opportunity to offer the services provided by Cavendish to finnCap’s existing client base.
Post Admission, the Group will provide an integrated offering to growth companies for raising private and public equity and debt, alongside advice on acquisitions and disposals with a mission to help ambitious companies grow. Its strategy will be to expand its successful equity capital market business, add additional services of which the acquisition of Cavendish forms a key part, and to focus on the recognition of its brand in its core markets.
Sam Smith, Chief Executive Officer of finnCap said: “Today’s announcement is a significant milestone for finnCap. The acquisition of Cavendish marks an important step forward in the Group’s drive to become a leading full-service provider of growth capital and advisory services to ambitious companies both public and private.
finnCap’s mission has always been to help ambitious companies grow, and after a number of successful years focusing on equity capital markets, fundraising and corporate finance advice it is very well placed to expand its suite of services and further strengthen its market position. Cavendish is an integral part of this strategy and will enable finnCap to deliver sell side M&A services to private and public companies, as well as add a debt advisory capability to its capital raising activities.
The proposed admission to AIM will boost finnCap’s profile, provide the Group with the access to capital to fuel its own growth ambitions and allow the Group to continue to incentivise its staff with packages that are aligned with shareholders.
We welcome Lord Leigh of Hurley, Joe Stelzer and the Cavendish team to the Group and look forward to working with them as we create the corporate adviser of choice to the UK’s leading growth companies.”
Lord Leigh of Hurley, Senior Partner of Cavendish and proposed Executive Deputy Chairman of finnCap said: “We are delighted to be joining finnCap at an exciting time for the Group. As a result of the combination with finnCap, we will considerably bolster the range of services we can offer clients, beyond our core M&A capability, to include private debt and equity fundraisings as well as access to the public markets.
Additionally, being a member firm of Oaklins, the international M&A advisor, brings a global dimension to the Group’s corporate finance and M&A capabilities. We look forward to playing an active part in finnCap’s expansion and, by leveraging our combined expertise across key business sectors, we can deliver a comprehensive service to the UK’s ambitious growth companies, which contribute so much to the economy.”
This announcement is an advertisement and not an admission document or a prospectus and does not constitute or form part of an offer to sell or issue or a solicitation of an offer to subscribe for or buy any securities nor should it be relied upon in connection with any contract or commitment whatsoever in any jurisdiction. Investors should not purchase or subscribe for any transferable securities referred to in this announcement except on the basis of the information in the admission document (the “Admission Document”) intended to be published by finnCap Group plc in due course in connection with the proposed admission of its issued and to be issued ordinary shares (“Shares”) to trading on AIM, a market operated by London Stock Exchange plc (“AIM”). Copies of the Admission Document will, following publication, be available during normal business hours on any day (except Saturdays, Sundays and public holidays) at the registered office of the Group and online at www.finnCap.com, subject to applicable securities laws or regulations. References in this announcement to the “Group” mean finnCap Group plc together with its subsidiaries as at Admission (including Cavendish).
24 October 2018
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