A Middle East investor has snapped up a stake in City stockbroker WH Ireland Group plc (LON:WHI) for £8.45mln.
Kuwaiti European Holdings (KEH) Group said it had bought a 23.1% stake in Ireland, confirming weekend media speculation.
As part of the deal, group chief executive Humphrey Percy will also become a KEH Group representative on the WH Ireland board, subject to regulatory approval.
KEH said the move was a strategic investment designed to further augment and expand the group’s interest in and commitment to the UK’s financial industry.
It said the WH Ireland business and strategy would fit well with KEH’s financial services businesses, Armila Capital and Al-Fouz Investment Company.
The pair would provide cross-market corporate and capital markets advisory and capital raising services to their respective clients.
Percy said: "An important component of KEH’s strategy is to build out a financial services division that can develop a true bridge between investors in Kuwait and elsewhere in the Middle East, and financial markets in Europe, particularly in London.
"Having a significant stake in a prominent London securities house such as WH Ireland is an exciting next step of this strategy."
WH Ireland's chief executive Richard Killingbeck said: "This is good news for WH Ireland, its shareholders, clients and employees."
There had been speculation that KEH would buy nearly 30% of Ireland. Shares in the stockbroker fell 7.5p, or 5.9%, to 120p in early London trading.