James Hay adopts takeover strategy to snatch up Nucleus

The prospective acquisition of Nucleus by James Hay has shifted to a takeover strategy. James Hay is now targeting Nucleus’ shareholders, with consent from the Nucleus directors, in order to have a higher chance at securing the deal. In the original acquisition format, 75 per cent of shareholders needed to approve the deal, while the new strategy requires only 50 per cent. 

The terms of the original £145m deal have remained the same. Each shareholder will receive 188 pence per share if the transaction finalises. 

While Nucleus’ business has suffered during the pandemic, both parties appear optimistic about the potential of the takeover. Nucleus directors have confirmed they will recommend the shareholders unanimously accept the offer. 

A representative for James Hay said to the FTAdviser: “We were pleased to note that at the closing of the deadline for registering votes prior to the meeting, 94.93 per cent of the votes that had been submitted in respect of the scheme were in favour and that 44 registered members had voted submitted votes (of which 27 were in favour and 17 were against).  

“The combination of the James Hay and Nucleus businesses represents a compelling opportunity to establish a leading independent adviser platform, with £45bn of AUA, with the scale to invest and deliver real value for advisers.”

If the takeover goes ahead, James Hay plans to integrate Nucleus’ operations into the heart of the business.

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