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Miton directors scrap buyout plan

The directors of Miton Asset Management are no longer pursuing a management buyout of the business.

A buyout was one of the proposals before the restructure of Midas Capital, Miton’s parent company, to improve the health of its balance sheet.

However, the directors, Martin Gray, Nick Greenwood, Sam Liddle, and Scott Campbell, never made a formal bid for the wholly owned subsidiary. 

Last week Midas Capital announed its intention to sell its wealth management business, including iimia Wealth Management, to Jardine Lloyd Thompson (JLT).

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 scheduled for completion in January 2010. 

As part of the deal, JLT is expected to take on all Exeter-based iimia employees.

In the six months to June 30, 2009, iimia wealth management contributed £460,000 to Midas’ pre-tax profit on revenues of £2.9m. 

In a statement to the stockmarket the group says it intends to use the proceeds of the sale to pay down its preference share capital.

Midas chairman Colin Rutherford “We are now in a position to focus on our core management offering of Miton and Midas, which will be the focus of our activity in 2010.”

The group will aim to attract new talent and develop its product range next year, he adds. It might also issue new shares via a placing to raise capital for the business. 

Midas acquired Miton and iimia Wealth Management in 2008 in a deal that saw Midas take on almost £30m of debt.

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 September Midas Capital sold off Intelli Corporate Finance, its wholly owned subsidiary, as part of an ongoing drive to ­streamline the business and pay down its debt. 

JLT is an international employee benefits business. It recently acquired HSBC Actuaries & Consultants for £27m.


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