Investec to snap up Evolution for £233m

9th Sep 2011 08:00

Investec, the FTSE 100 South African banking titan, has made a recommended offer for Evolution Securities, beating rival bidder Cannacord in their race to snap up the investment banking and stockbroking firm.Investec announced on Friday morning that it has reached an agreement with Evolution's board on terms of a recommended share offer, valuing the company at £233.2m.Canaccord, the Toronto-listed wealth management business, which announced on 16 August that it was in preliminary discussion with Evolution, said last night that it now no longer intends to make a firm offer.Evolution shareholders will receive 0.23124 new Investec shares in exchange for each Evolution share they hold, which equates to the value of 100.24p per Evolution share, a 44.7% premium to the three-month trading average to 2 August of 69.2p."Investec's offer provides shareholders with a very attractive valuation for their investment in Evolution and the opportunity to remain invested in a well-capitalised specialist financial institution," said Evolution's chief executive Alex Snow. "Investec is an excellent home for the two main businesses within Evolution providing an excellent cultural fit for both employees and clients," Snow said."This fits very well with our strategy to build non-lending revenues. The group has seen strong growth in third party assets under management and the acquisition of Evolution will add further momentum. The transaction strengthens our position in the UK, giving us greater scale in both private client wealth management and investment banking," said Investec's chief executive Stephen Koseff.BC