Slaughter and May is advising Investec Asset Management, an international, specialist provider of active investment products and services, on an agreement with its senior management, and related financing, for the acquisition of a 15% shareholding in Investec Asset Management for £180 million in cash.
Under the terms of the agreement, which were announced on 14 March 2013, there will also be an option for senior management of Investec Asset Management to acquire up to a further 5% of Investec Asset Management equity over a period of seven years from 1 April 2013. Investec Asset Management has also agreed, before completion, to pay Investec a special dividend of approximately £60 million.
The senior management of Investec Asset Management comprise the Chief Executive Hendrik du Toit and 40 senior management and employees (the 'Participants').
The Participants are financing the acquisition through a combination of debt and equity financing. £90 million of the equity financing will be provided by the Participants and £90 million will be provided by debt financing. Of the debt, £50 million is being provided as senior debt from HSBC, with £40 million provided from the Investec group. The equity will be financed by the Participants through a combination of cash, accelerated bonuses and personal borrowings.
The transaction is conditional on shareholder and other approvals and completion is expected by the end of July 2013.
Webber Wentzel is advising Investec Asset Management on South African law and BLC Chambers is advising Investec Asset Management on Mauritian law.
Contacts
Corporate and Commercial: Nilufer von Bismarck (partner), Selina Randhawa (associate), Elizabeth Anderson (associate); Financing: Ed Fife (partner), Akshay Kundaiker (associate), Alexander Biles (associate), David Hay (associate); Tax: Tony Beare (partner), Elliot Aron (associate); Financial Regulation: Jan Putnis (partner), Tim Fosh (associate), Michael Raymond (associate); Pensions and Employment: Jonathan Fenn (partner), Roland Doughty (partner)