Midas Capital to sell wealth management arm
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Midas Capital is selling its entire wealth management business, including iimia Wealth Management, to Jardine Lloyd Thompson.
The groups are in the final stages of talks which will see the wealth management business sold to JLT in a £7.25m deal. It is expected to complete in January 2010.
As part of the deal, JLT is expected to take on all Exeter-based iimia employees.
JLT is an international employee benefits business. It recently acquired HSBC Actuaries & Consultants for £27m.
In September, Midas Capital sold off Intelli Corporate Finance, its wholly-owned subsidiary, as part of an ongoing drive to streamline the business and shore up its balance sheet.
In the summer it merged two iimia funds into its Miton Asset Management fund range, and rebranded others under the Miton name.
Earlier this year Midas announced a restructure plan to deal with its “unsustainable” level of debt, which at the time stood at £36.5m. The proposal was later approved by shareholders.
In the 6 months to 30 June 2009, the iWM businesses contributed £0.46 million to Midas’ consolidated profit before management charges, amortisation, exceptional items and tax on revenues of £2.9 million.
Midas chairman Colin Rutherford says: “We are extremely grateful to our wealth management team for their contribution over the years. The combination with JLT presents their business with an exciting growth opportunity. With its expected completion in January 2010 we can focus, as planned, on fund management activities through our Midas and Miton brands.”
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