Gresham House gets FCA approval for acquisition by Searchlight funds

10th Oct 2023 11:55

(Sharecast News) - Gresham House announced a critical regulatory approval for its planned acquisition by an entity consisting of funds directed by Searchlight Capital Partners, dubbed 'Bidco', on Tuesday.

The AIM-traded company announced an agreement for a recommended final cash offer for the whole issued and to-be-issued share capital of Gresham House on 17 July through a scheme of arrangement.

Scheme shareholders approved that agreement during meetings on 30 August.

Gresham House said that on 6 October, it had successfully garnered the requisite approval from the Financial Conduct Authority (FCA) to the change in control of several entities, including Gresham House Asset Management, TradeRisks, and Resi Capital Management.

However, several regulatory conditions were still to be satisfied, such as gaining approvals from the Central Bank of Ireland (CBI) and certain US state insurance regulators, specifically on the change in control of Gresham House Asset Management Ireland and certain portfolio companies of Gresham House Funds.

On the conclusion of the acquisition, Gresham House would transition into a portfolio company and be incorporated into the existing collection of investments overseen by the funds advised by Searchlight.

"Bidco highly values the current structure, strategy and management of Gresham House and recognises that the management team and employees will be key to Gresham House's success going forward," the announcement read.

"In particular, Bidco values the Gresham House management team's operational expertise and experience."

As a result, Bidco said it was committed to supporting the existing Gresham House management team in continuing to execute its current strategy.

"Following completion of the acquisition, Bidco also intends to support Gresham House by leveraging its industry experience to accelerate Gresham House's strategy, including by providing capital and support to identify and execute successful acquisitions in the UK and internationally."

At 1131 BST, shares in Gresham House were up 0.07% at 1,073.25p.

Reporting by Josh White for Sharecast.com.