• Creates a leading UK investment bank servicing the small and mid-cap market
• Becomes the second largest broker to listed companies on the London Stock
Exchange measured by number of clients
Landsbanki has tendered an offer to buy all issued shares of the UK broker and
investment bank Bridgewell plc. The offer is made at 125 pence per share which
values Bridgewell at approximately GBP 60,3 million on a fully diluted basis.
This places Landsbanki among the major players on the UK small and mid cap
market.
The businesses of Bridgewell and Teather & Greenwood | Landsbanki are
complementary and will be merged to form Landsbanki Securities UK. The new
entity, in parallel with Landsbanki´s London Branch, makes Landsbanki a leading
UK investment bank in the small to mid-cap UK market, offering a full range of
financial services to its clients. It is yet another milestone in Landsbanki´s
strategy of building an integrated corporate investment bank focusing on the
mid cap sector in Europe.
Acting as broker to 198 UK companies, Landsbanki will be the second largest
broker to listed companies on the London Stock Exchange, as measured by number
of clients. It will rank tenth for FTSE250 companies by the same measure, and
will also be the retained financial adviser to 112 corporate clients.
Nick Stagg, CEO of Teather & Greenwood | Landsbanki, will head the joint
entity, with Jim Renwick, Bridgewell´s CEO, as deputy head. Bridgewell´s senior
management and key employees have confirmed their commitment to continue being
part of the enlarged team.
The consideration of GBP 60,3 million is made up of cash (10%) and new issued
Landsbanki shares (90%). The offer will be implemented by way of a scheme of
arrangement under section 425 of the UK Companies Act 1985. Landsbanki has
received irrevocable undertakings from Bridgewell´s shareholders representing
in excess of 24% in favour of the transaction. The acquisition is expected to
be completed in July 2007. The transaction will not have a material effect on
Landsbanki´s 2007 income or balance sheet. Restructuring and transaction costs
are estimated at GBP 10 million. The transaction is contingent upon regulatory
approval in Iceland and the UK.
Landsbanki was advised by Teather & Greenwood | Landsbanki. Bridgewell was
advised by N. M. Rothschild & Sons.
Sigurjón Th. Árnason, Landsbanki CEO said:
The acquisition is an excellent strategic fit to our current operations in the
UK. It further strengthens our base for organic growth in our corporate and
investment banking activities. We have a high regard for the Bridgewell team
and the quality of its client list. This acquisition is an important step in
Landsbanki´s growth strategy as a European investment and corporate bank
focused on servicing mid-cap corporate clients.
Further information on the terms of the acquisition can be found in the Rule
2.5 Announcement which is published on the London Stock Exchange and OMX Nordic
Exchange Iceland. We also refer to Rule 2.10 Announcement published on the
London Stock Exchange and OMX Nordic Exchang Iceland.
Contacts
Landsbanki:
CEOs: Sigurjón Th. Árnason tel: +354 898 0177
PR: Financial Dynamics, Andrew Walton, tel. +44 (0)20 7831 3113
T&G|Landsbanki Contacts
CEO: Nick Stagg, tel +44 (0) 207 424 7719
Bridgewell Contacts
CEO: Jim Renwick, tel +44 (0) 207 003 3140
About Landsbanki
Landsbanki was founded in 1876 in Iceland. It is the leading provider of
financial services in the Icelandic markets while a majority of its revenues
now originate outside its domestic markets. Landsbanki is one of the ten
largest banks in Scandinavia measured by market cap. It provides its clients
with reliable and pro-active corporate banking services across Europe.
Landsbanki´s growth in recent years is primarily organic, based upon
strategically acquired platforms in the UK, Ireland and Continental Europe. As
a result Landsbanki now has operations in 15 countries, including all the major
financial centres in Europe. It has some of the most extensive research
coverage of European stocks, covering more than 800 companies locally.
Landsbanki also offers UK savers a consistently competitive rate on its Icesave
deposit account.
Landsbanki has a market cap of EUR 4.3 billion and total assets of
approximately EUR 26.4 billion. The bank´s after-tax profit in 2006 amounted to
EUR 444 million. Landsbanki currently has 2,200 employees.
About Bridgewell
Bridgewell was founded in 2000 to offer corporate advisory, broking, equity
research, market making and investor relations services. The company was listed
on the AIM market in 2006. Bridgewell´s research has earned several accolades
including fourth place in the Thomson Extel survey 2006 UK Small Caps Report.
Bridgewell has 130 employees. Bridgewell's total revenues amounted to £30.8
million in 2006 with underlying profit in 2006 before tax reported to be £4.5
million.
