By Scott Wright
SCOTTISH fund management veteran Martin Gilbert’s takeover vehicle has been given more time to prepare an offer for investment firm River and Mercantile Group.
AssetCo, which is focused on acquiring, managing and operating asset and wealth management companies, now has until 5pm on January 25 to ‘put up or shut up’ under City rules.
Talks between AssetCo and River and Mercantile Group have continued over Christmas and into the new year, with AssetCo declaring that a deal “would create significant value for the combined group’s clients, portfolio managers, employees and shareholders”.
Campbell Fleming, chief executive of AssetCo, said in a statement yesterday: “We welcome the board of River and Mercantile Group’s decision to extend the offer period. The extended period will allow us to finalise a potential offer to acquire River and Mercantile (excluding its Solutions business) for the benefit of both AssetCo and River and Mercantile shareholders.
“Over the last few weeks, we have met with additional members of the River and Mercantile team which has confirmed our view of the great potential it has as an active equity and infrastructure investment manager. River and Mercantile has the people, expertise and product offering to be a core part of AssetCo as we build an agile 21st century asset and wealth management business that meets the needs of investors.”
The future of River and Mercantile has been in the spotlight since November 23, when it received preliminary approaches from AssetCo and Premier Miton Group regarding possible offers. Both AssetCo and Premier Miton said stated to the River and Mercantile board then that any possible offer would be conditional on the sale of its Solutions Business. That was sold to Schroders for around £230m in a deal that was approved by River and Mercantile shareholders on December 13.
On December 21, the initial deadline for offers, AssetCo and Premier Miton were given an extension until 5pm on January 18. Premier Miton withdrew from the race on January 13.
Mr Gilbert joined AssetCo in January 2021 after making his name co-founding and building up Aberdeen Asset Management, which culminated in its £11 billion merger with Standard Life in 2017. In May last year, AssetCo, which is chaired by Mr Gilbert, acquired Edinburgh’s Saracen Fund Managers for £2.75 million.
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