Midas Capital is to sell its wholly owned subsidary, Intelli Corporate Finance, to Canaccord Adams. Intelli is a corporate advisory and broking firm with offices in London and Edinburgh.
Colin Rutherford, the chairman of Midas, says in a statement to the stock exchange that the sale will realise cash resources which will be used to partially retire the group’s preference capital.
The consideration receivable for Intelli will comprise a cash payment equivalent to net assets as at September 30, plus a goodwill of £1m.
In March, Midas said it was considering selling off subsidaries and also rights issues. Back then, the board then decided against selling iimia Wealth Management and Miton Optimal, which it acquired last year. The group also decided against holding a rights issue.
Instead, its bank lender took 20% of the company in a debt-for-equity swap after the company requested a restructured borrowing agreement.
Completion of the sale of Intelli is expected to take place on October 1. According to the statement, Intelli had combined revenues of £3.7m and profit before tax and management charges of £503,000 last year. As at December 31, the net book value of the Intelli business was £3.3m.
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