Close Bros sell offshore business

Close Brothers has sold its trust, fund administration, asset management and banking business in the Channel Islands and the Isle of Man to Kleinwort Benson Channel Islands Holdings for £29.1m.

The price is subject to adjustment depending on the businesses net assets at the time of completion which is expected by the end of the year, pending regulatory approval.

Close Brothers chief executive Preben Prebensen says: “We are committed to developing our UK based wealth and asset management and divesting these offshore activities is a further step in this important transformation.”

Close Brothers expect the sale to generate a loss on disposal of £24.7m including the cost of the sale and an £11.2m impairment of goodwill.

The business recorded an after tax profit of £700,000 in July 2010 with £622m in gross assets and £474m of funds under management.