Court sanctions Investec acquisition

Johannesburg - The offer scheme of arrangement for specialist banker Investec's proposed acquisition of UK group Evolution plc has been sanctioned by the UK court.

In terms of the offer, shareholders on the register at the Scheme Record Time, being 6.00 p.m. on 21 December 2011, will receive 0.23124 New Investec Shares for each Scheme Share held.

A request has been made to the UK Listing Authority and the London Stock Exchange for a suspension of the listing of, and dealings in, Evolution shares from the close of business today. The new Investec shares will begin trading on the London Stock Exchange and JSE from tomorrow (Thursday).

Investec said recently that the acquisition of UK investment banker Evolution Group Plc will see the creation of a major UK player in the private client investment management industry.

The combination of Evolution with Investec Investment Banking will also contribute to Investec's existing strategy to be the leading mid-market investment bank in the UK, according to Investec CEO Stephen Koseff.

"This is a good strategic acquisition for Investec in the UK that will allow us to build scale in two important areas of our business," Koseff enthused at a pre-close briefing for investors.

Investec announced in November that it is to acquire Evolution, which comprises a stockbroking division and wealth management company Williams de Broe that manages around GBP6 billion of assets, in a deal that values the UK group at around £233.2 million.

Koseff said the deal was in line with Investec's stated strategy.

"We seek to maintain a balance between revenue earned from operational risk businesses and revenue earned from financial risk businesses. Our current strategic objectives include increasing the proportion of our non-lending revenues. It also includes focus on growing our private client wealth management and asset management businesses."