JTC raises GBP79 million in share placing to part-fund SALI acquisition

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(Alliance News) – JTC PLC on Thursday said it has raised GBP78.9 million in a placing of shares sold at Wednesday’s closing price.

The Jersey-based fund manager placed 11.0 million new shares for 718 pence each. It said the new shares should start trading on the London Main Marker on October 22.

Shares were up 6.4% at 764.00 pence in London on Thursday.

The funds raised will be used to acquire US-based fund and structuring administration services provider SALI in a deal worth up to USD236.0 million.

JTC will pay an initial fee of USD204.5 million and up to USD31.5 million on performance targets.The initial USD204.5 million will be made up of USD192.2 million in cash and up to a maximum of USD12.3 million in shares.

The shares were placed by Numis Securities Ltd and Joh Berenberg Gossler & Co KG.

JTC’s Chief Financial Officer Martin Fotheringham acquired 389,972 shares, bringing his stake in the company to 0.5% of issued share capital. Chief operating Wendy Holly acquired 5,571 and now holds 0.3% of the issued share capital.

“The capital raised will support the acquisition of SALI Fund Services, a high quality business in the important US market and will also ensure that we maintain a strong balance sheet and significant firepower to continue executing on our disciplined inorganic growth strategy as part of our Galaxy Era business plan, in which we aim to double the size of the group,” said Chief Executive Nigel Le Quesne.

JTC said on Wednesday the deal is expected to complete at the end of October and stressed the placing is not conditional upon the completion of the acquisition.

It added that the net proceeds of the placing will be invested on a short-term basis while evaluating other acquisition opportunities, should the deal fall through.

By Josie O’Brien; josieobrien@alliancenews.com

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