Premier Miton Group Completes Tellworth Acquisition and Issues Equity
Why we think this is neutral
The equity raise announced by Premier Miton Group is relatively small in size compared to the company's market cap, suggesting it is not a significant dilution event. However, the lack of disclosure around the issue price of the new shares makes it difficult to fully assess the terms of the raise and whether it was done at an appropriate level. Without this key information, I cannot determine if the raise signals potential weakness in the share price. Overall, the details provided in the RNS are neutral, neither strongly positive nor negative.
Key Points
- Completion of acquisition of Tellworth Investments LLP
- Assets under Management managed by Tellworth team grew by £227m to £698m
- Additional Consideration due of £1.79m to be satisfied by £1.11m in cash and 1,205,392 new ordinary shares
- New shares to be held until three years from date of completion
Summary
Premier Miton Group plc has announced the completion of its acquisition of Tellworth Investments LLP, with the Assets under Management managed by the Tellworth team growing by £227m to £698m in the first year. To satisfy the Additional Consideration due of £1.79m, the company will issue 1,205,392 new ordinary shares, which will be held until three years from the date of completion. The new shares will rank pari passu with the existing ordinary shares of the company.