Cenkos Securities PLC (LON: CNKS) is in focus this morning after finnCap Group PLC (LON: FCAP) revealed plans of buying the investment bank in a deal that values its equity at £21.1 million ($25.9 million).
Details of the announced merger
The said agreement will replace every 3.19 shares of Cenkos with one share of finnCap.
Upon completion of the transaction, Cenkos shareholders will own 50% of the combined company that will have over £50 million in revenue and £20 million in cash on its balance sheet. In the press release, Cenkos CEO Julian Morse said:
This merger is combination of two firms with a shared client-centric culture, which presents opportunity to create a premium full-service advisory house supporting growth and investment companies and grow our combined business.
Both bank stocks are roughly flat on Thursday.
Morse and Farrugia to serve as co-CEOs
The press release also confirmed that Julian Morse will lead the combined company – that intends to work on rebranding – with John Farrugia (finnCap CEO) as co-CEOs.
Lisa Gordon will chair the board that will have equal number of directors from finnCap and Cenkos. Commenting on the merger announced today, she said:
This proactive and mutually-beneficial merger creates a champion for growth and investment companies, both UK-quoted and private entrepreneurial businesses, that are the backbone of our economy.
Cenkos shareholders will still receive 50 pence a share of cash dividend for 2022 that’s to be paid in the coming June.
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