European Wealth buys CIMCO Partners Management for £750,000

13th Sep 2016 07:52

(ShareCast News) - Investment manager European Wealth bought CIMCO Partners Management, which manages the G20 Absolute Return fund based in Gibraltar, for £750,000.The acquisition will add a third fund to European Wealth's in-house range and broaden the equity investment styles it has available, ahead of the launch of an institutional equity service planned later this year. CIMCO has funds worth about $22m under management.John Morton, chief executive at European Wealth, said the acquisition "further strengthens our position as a broad based and established wealth manager".European Wealth entered into a share purchase agreement with CIMCO's managing director Michael Mechas to buy the company, with £500,000 payable immediately and the rest will be paid by issuing 909,091 new ordinary shares of 5p each at 55p.Depending on CIMCO's performance, a further payment of about £250,000 will be about 12 months after the sale, also by the issuing of new ordinary shares.Application has been made for about 1.3m new ordinary shares to AIM to start trading around 19 September. Following admission, the company will have about 24.8m ordinary shares in issue and hold none in treasury.The company said Mechas will be joining European Wealth to continue in his position as lead investment director of the G20 Absolute Return fund, and join its investment committee to identify international acquisitions.Following trading on AIM, Mechas will hold about 1.3m ordinary shares which will represent about 5.5% of European Wealth's enlarged issued share capital.