Lighthouse rejects AFH Financial bid

17th Mar 2016 15:22

(ShareCast News) - Wealth manager AFH Financial Group has confirmed its takeover proposal to the board of financial adviser Lighthouse Group at 13p per share has been rejected.Worcestershire-based AFH, which is listed on the UK main market and describes itself as a financial planning led wealth management firm, said that Lighthouse had refused to meet to discuss the £17.4m cash and shares offer."The board of AFH is currently considering its next steps in connection with any offer for Lighthouse for which it will require appropriate access," said the £40m-capitalised company in a statement on Thursday afternoon.AFH has 140 self-employed financial advisers and 162 support staff, while Lighthouse has 151 staff in total, including employed advisers.Lighthouse shares initially topped 14p, a level they had not reached since 2008, before slipping to 12.77p, where it is valued at £13.4m.Having been as low as 3p in 2013, last year Lighthouse's share price more than doubled to 10p and have oscillated around that level since, with solid recent results highlighting the opportunities in its markets, including in personal and corporate pension markets, strong cash balance, operational scale and the board's confidence in the business model.AFH shares were down 2.4% to 161p by mid afternoon.