AssetCo acquires Ocean Dial Asset Management: A new chapter in asset and wealth management

In a significant move for the wealth management industry, AssetCo (AIM: ASTO), a trailblazing asset and wealth management company, announced its successful acquisition of Ocean Dial Asset Management Limited. This decisive step came to fruition post the green light from both the FCA and Indian regulatory authorities, marking a major milestone for AssetCo.

In the terms of the deal, AssetCo sealed the initial consideration with an impressive delivery of 1,464,129 ordinary shares and a sum of £2.46m (£1.82m after deducting cash from the business). There’s potential for an additional issuance of 1,464,129 ordinary shares, pending any adjustments, set to occur post-calendar year-end as stipulated by the Sale and Purchase Agreement. With an agreed upon share price of 68.3p for all consideration shares, AssetCo confirms having 6,818,898 ordinary shares in its treasury post this transaction.

After this game-changing acquisition, the company’s total issued share capital stands at a whopping 149,292,970 Ordinary Shares, with 6,818,898 of those safely tucked away in treasury. Significantly, the voting rights associated with these Ordinary Shares tally up to 142,474,072. For shareholders keen on crunching the numbers, this figure, 142,474,072, serves as the base denominator for calculations, particularly when discerning their share interests as per the FCA’s Disclosure Guidance and Transparency Rules.

Diving deeper into Ocean Dial Asset Management’s credentials, this esteemed entity currently oversees the assets of the India Capital Growth Fund Limited. As of 22 September 2023, the fund boasts a net asset value circling around c.£156m, generating a commendable annualized revenue rate of £1.86m for its management team. With net assets surpassing £0.6m at completion, the fund’s success is credited to the expert guidance of Gaurav Narain and his dedicated India-UK based team. The acquisition promises to amplify earnings for the AssetCo Group, and with the anticipated synergies, the future looks even brighter.

Martin Gilbert, the esteemed Chairman of AssetCo, expressed his elation, emphasizing the timely completion of the acquisition and warmly welcoming the India Capital Growth Fund. He shared AssetCo’s keen interest in the expansive potential India presents, with hopes of amalgamating Ocean Dial, including the expertise of Gaurav and his crew, under the famed River and Mercantile brand. Adding to the sentiments, Gaurav Deepak, the CEO of Avendus Capital, relayed his pleasure over the sale to AssetCo, projecting a prosperous alliance with Martin Gilbert and team.