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UK Stockbroking Group Picks Up Blue Boar Stake

Wendy Spires Assistant Editor 3 March 2009

UK Stockbroking Group Picks Up Blue Boar Stake

UK investment management goup Evolve Capital has agreed to sell its majority stake in investment bank Blue Oar to WH Ireland, the UK regional stockbroker and private client group.

Evolve, which has a 64.9 per cent stake in Blue Oar, said in a statement it had taken the decision on the deal after a strategic review of Blue Oar.

Under the terms of the deal, for every Blue Oar share WH Ireland will pay 0.1194 in new shares and 1 pence in cash. WH Ireland values each Blue Oar share at 9.66 pence, equating to a value of £16.2 million ($23 million) for the firm’s entire issued share capital.

“We are delighted to have agreed the terms of a possible offer with WH Ireland. The proposal provides a significantly enhanced platform to take advantage of dislocation amongst our competitors whilst ensuring we have the financial and operational resources to manage the combined business through the current downturn. In addition it provides an attractive route forward for all the Blue Oar shareholders, clients and employees,” said Justin Lewis, chief executive of Blue Oar.

On completion of the deal, Evolve said it will become WH Ireland's single largest shareholder.

“Blue Oar would be an excellent strategic fit for WH Ireland, strengthening our core activities of institutional investment banking, asset management and private client stockbroking. An offer on these terms would allow Blue Oar shareholders to retain an interest in a financial services organisation with an excellent platform for growth,” said Richard Fox, chief executive of WH Ireland.

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