Sanlam takeover of Merchant Securities gets shareholder backing

Shareholders in financial services group Merchant Securities have backed a proposed takeover bid from South African life company Sanlam.

Merchant Securities has announced that the £12.2 million bid has received the backing of shareholders representing 93.7% of the offer shares in the company.

Under the terms of the proposed deal, Merchant Securities, which provides investment management, corporate finance, institutional trading and private equity, would be taken over by Sanlam-owned company Bidco – with Sanlam UK owning 75% of the shares of Bidco and Merchant Securities management owning the remaining 25%.

Sanlam already has a significant presence in the UK as the largest single shareholder in Nucleus and a majority stake in discretionary manager Principal Investment Management.  It also has a majority stake in advice firm Buckles, which was recently rebranded with the Sanlam livery, and has a stake in investment group Four Capital Partners.