Bermuda National Limited (BNL) has inked a sale and purchase agreement to acquire UK-based private wealth management firm JOHIM CS from Credit Suisse.
The total cash consideration is £50m and after closing of the deal BNL will own 62.5% of JOHIM’s issued share capital, while the remaining will be owned by JOHIM’s management and staff.
Pending regulatory approval from the UK’s Financial Services Authority and its successors, the deal is expected to conclude during June.
The deal will be funded by a mixture of BNL’s existing cash, exercise of the BNL Bonus Warrants by BNL’s major shareholders, JOHIM’s surplus cash, debt funding, and investment by JOHIM’s management and staff.
The planned transaction will increases the scale of BNL considerably with shareholders’ funds expected to increase to more than $200m.
Westhouse Securities is serving as financial adviser to BNL pertaining to the transaction.
Established in 1986 and acquired by Credit Suisse in 2001, JOHIM focuses on discretionary portfolio management for private clients, charities and institutions as well as offering a suite of in-house managed investment funds.
As at 31 December 2012, JOHIM had assets under management (AUM) of nearly £3.6bn and total AUM and assets under control of almost £4.8bn.
Managing 100% owned banking subsidiary, BNL is a listed exempt financial services investment holding company with shareholder funds of $138m.