15 February 2011
Brewin Dolphin Holdings Plc (‘Group’) has today signed amemorandum of understanding relating to the proposed disposal of its CorporateAdvisory & Broking division to a new partnership entity to be called N+1Brewin. The entity will be capitalised jointly by leading European financialadvisory and asset management group, N+1, and senior management of thedivision.
Group will receive a total nominal goodwill consideration of £5mfor the disposal, comprising £1m cash up front and a 14% preferred interest inthe new entity with a nominal value of £4m. Group will receive a 6% per annumreturn on its preferred interest which will be paid in priority to ordinarydistributions for the period to 2017. It is envisaged that the preferredinterest will be held for the medium term, allowing Group to benefit from anyfuture uplift in the new entity’s value when it ultimately converts into N+1equity.
The Corporate Advisory & Broking division reported anoperating profit of £1.3m from turnover of £10.9m in the year ended 26September 2010. At the year end, the division had gross assets of £33.4mand nil net assets.
Completion of the transaction is subject to contract and receiptof regulatory approval for the new entity. The division will remain partof the Group until completion, which is anticipated to take place by theGroup’s year end in September 2011.
The proposed disposal will free the Group from its regulatorycapital requirement for the division and simplify the structure of the Groupinto that of a pure investment manager.
Further announcements will be made as appropriate.
Jamie Matheson, the Chairman of the Group, said “This transaction will enable Brewin Dolphin to wholly focus onits core investment management business. We wish the team every successwith their new partner.”
Graeme Summers, Head of the Corporate Advisory & Brokingdivision and Managing Partner -elect of N+1 Brewin, said “The new entitywill enable us to enhance our service offering for our clients by combining thestrength, depth and international reach of N+1’s European financial advisoryand asset management expertise, with the existing skills of our team here inthe UK. The team is very excited by the significant opportunities that lieahead.”
The Group is being advised on this transaction by West HillCorporate Finance Limited.
For further information please contact:
| Jamie Matheson | AndrewHayes/Wendy Baker |
| Executive Chairman | Hudson Sandler |
| Brewin Dolphin | 020 7796 4133 |
| 020 7248 4400 |