REG - AssetCo PLC - Sale of Interest in RMI LLP

AssetcoAnnouncement

06/10/2023 07:00

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RNS Number : 8989O  AssetCo PLC  06 October 2023

6 October 2023

LEI: 213800LFMHKVNTZ7GV45

For Immediate Release

AssetCo plc

("AssetCo" or the "Company")

Sale of Interest in River & Mercantile Infrastructure LLP ("RMI")

Sale of Interest in RMI

AssetCo and its wholly owned subsidiary, River & Mercantile Holdings
Limited ("Holdings") are pleased to announce that they have reached agreement
in principle for the transfer of their interest as corporate partner in RMI,
to partners of RMI led by Ian Berry, managing partner of RMI (the "Sale").

 

Partners of RMI have agreed terms with AssetCo and Holdings to continue
managing and operating RMI outside the AssetCo Group. It is anticipated that
the transaction(s) to effect this change will be completed, subject to
agreeing final contractual documentation, in Q4 2023.

About RMI

RMI's primary activity is as investment adviser to the River and Mercantile
Infrastructure Income Fund ("the Fund") which was launched and made its first
investments in 2022. After careful consideration, each of AssetCo, Holdings,
and partners of RMI have concluded that the prospects for the Fund and the
business would be optimised by RMI operating outside AssetCo.

 

Management fee revenues for the year ending 30 September 2023 earned by RMI on
behalf of the Group are estimated at £0.53m with a loss for the year
estimated at £0.75m before non-recurring items. AssetCo made a provision of
£1.7m in its Interim Results published in June 2023 against assets held on
the balance sheet relating to RMI, which compares to gross balance sheet
assets which currently stand at an estimated £2.5m (£0.5m net).
Consideration for the transaction is the nominal figure of £1 but release
from certain previous obligations will result in a write back of £0.7m.

 

Martin Gilbert, Executive Chair of AssetCo said:

 

"We are pleased to have reached agreement with Ian and his team for them to
take the business of RMI out of the AssetCo Group. This will allow that team
to re-shape the RMI business to focus on delivering the best outcome for the
Fund's clients while leaving AssetCo to focus on building its active equities
business. In doing so, we are looking to capitalise on the recent acquisition
of Ocean Dial Asset Management and bringing this together with our other
active equities businesses under the River & Mercantile banner. In that
context, the operations of our three legacy Scottish businesses have now been
fully amalgamated into a single unit pending further integration with River
& Mercantile in London before calendar year end.

This move, following quite swiftly on the heels of our disposal of Rize ETF
Limited, delivers a much-simplified Group which is better able to withstand
the significant headwinds that persist in global markets for asset management
services. Our narrower focus, together with the financial support of our
valuable stake in the business of Parmenion, gives us renewed confidence for
the future."

 

For further information, please contact:

 

 AssetCo plc                       Numis Securities Limited

 Gary Marshall, CFOO               Nominated adviser and joint broker

 Peter McKellar, Deputy Chairman   Giles Rolls / Charles Farquhar

 Tel: +44 (0) 7788 338157          Tel: +44 (0) 20 7260 1000

 Panmure Gordon (UK) Limited       H/Advisors Maitland

 Joint broker                      Neil Bennett

 Atholl Tweedie                    Rachel Cohen

 Tel: +44 (0) 20 7886 2906         Tel: +44 (0) 20 7379 5151

 

For further details, visit the website, www.assetco.com
(http://www.assetco.com/)

Ticker: AIM: ASTO.L

 

 

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