DWF is advising AIM listed City of London Group plc on its proposed £20m acquisition of equity release firm Milton Homes. The acquisition will constitute a reverse takeover under the AIM Rules.

City of London Group currently invests in financial services businesses which provide finance to the SME and professional services sectors.

Milton Homes is a provider of equity release products for residential property. It is currently owned by DV4, a fund advised by property investment advisers Delancey. The deal will see DV4 receive £7m in cash and the remainder in shares in City of London Group.

City of London Group is also raising £11m through an equity fundraising, comprising £7m through non-preemptive subscriptions and £4m through a fully underwritten open offer, both at a price of 90p per new ordinary share.

Matthew Doughty, Head of Corporate at DWF London, advised on the deal with support from corporate partner Alistair Hogarth and director Justin Edgar.

Matthew Doughty said: "We are delighted to be advising the City of London Group on this transformational transaction. This deal highlights our expertise in M&A in the financial services sector and continues our strong track record of equity capital markets transactions, particularly on AIM."