CVC backs Collins Stewart MBO

Singer & Friedlander is selling its Collins Stewart stockbroking business to management.

  • The management of Collins Stewart, backed by a consortium led by CVC Capital Partners, will pay approximately £122m for the mainly institutional broker.
  • The sale follows a strategic decision by the S&G Board, taken in March, to reduce the group’s dependence on stockbroking and increase shareholder return. It intends to use the proceeds to develop its banking and fund management activities.

The sale price of £122m compares favourably with the cost to the S&F of the shares of Collins Stewart of £57.5m. S&F will receive £112.5m in cash, £5.5m in 5-year on-assignable subordinated loan notes, and an additional cash payment on the determination of the net asset value as at 31 March 2000.