Close Bros sells corporate finance arm

18th May 2009 07:24

Merchant bank Close Brothers has sold Daiwa Securities its corporate finance advisory business for a net cash consideration of £67m. Close Brothers will receive gross consideration of £75m but will contribute £8m of working capital prior to completion.In the six months to 31 January 2009, Close Brothers Corporate Finance reported a loss after tax of £2.6m. In the year to 31 July 2008, Close Brothers Corporate Finance achieved profit after tax of £4.7m and had total assets of £58.4m at the year-end."Our focus is on developing our three larger divisions, Banking, Asset Management and Securities, which are well positioned and have strong prospects. The sale of the corporate finance business is a good opportunity for us to realise value for shareholders," chief executive Preben Prebensen said.