LONDON: Stock broking firm Panmure Gordon & Co. Plc. said it is forging a joint venture with HBOS Plc. unit Bank of Scotland to provide funding for small companies looking to float. As part of the deal, Bank of Scotland will acquire an 8 per cent stake in the AIM-listed firm buying 4.9 million shares at 220 pence each.
Panmure Gordon, formed in April 2005 after a merger of the Panmure broking business with Durlacher investment company, said the joint venture, Panmure Capital, will initially have a committed equity of 30 million pounds drawn down over three years. The two partners will each bring in 14.25 million pounds and own 47.5 per cent each of the new company. The managers will own 5 per cent through a commitment of 1.5 million pounds, which includes 1 million pounds from Panmure Gordon chairman Richard Wyatt, who will also own two thirds of Panmure Capital Partners, which will manage the fund.
Panmure Gordon's chief executive Tim Linacre said the new company will address a clear market need for late stage small cap growth funding. "The fund extends the Panmure Gordon franchise, offers the possibility of attractive returns and should also be a source of future flotations and corporate clients."
In a trading statement, Panmure Gordon said it hopes to have an operating profit before exceptionals of 5.4 million pounds for the full year on revenues of 29.9 million pounds. It has appointed Charles Stonehill as non-executive deputy chairman of the company.
Panmure Gordon, founded in 1876 by Harry Panmure Gordon, was originally bought by merchant bank Lazard in 2004 from German banking group WestLB for what is described as a nominal sum, and then merged it with Durlacher, a listed stock broking firm. Lazard then retained a third of the shares in the merged company, which is now valued around 134 million pounds.
Posted
on : Sat, 14 Jan 2006 14:15 GMT | Investments News
By : Chris Rowe
|
