US broker Raymond James (NYSE:RJF) has agreed a takeover of venerable City of London stockbroker Charles Stanley (LSE:CAY) Group PLC.
The Florida-headquartered firm made an offer of 515p per share, valuing the 229-year-old institution at £279mln, with the price being a 43.5% premium to the closing price overnight and with the shares not having topped £5 in over seven years.
Directors of the City broker said they intend to unanimously recommend that shareholders vote in favour of the scheme of arrangement and have irrevocably undertaken to do so themselves, holding a combined stake of roughly 14.7%.
“Raymond James has long admired Charles Stanley's reputation, heritage and its talented pool of investment managers, financial planners and professionals.
“The two firms share a common client-centric approach and both offer employed and self-employed affiliation models, while Raymond James also provides platform services, enabling the flexibility that wealth managers value,” the US firm ingratiated.
“Charles Stanley meets Raymond James' historical acquisition criteria, in particular as an excellent strategic fit with a complementary culture.”