The Numis Corporation PLC (LON: NUM) share price soared 64.4% after revealing that it had agreed on a recommended all-cash offer for the company from Deutsche Bank, which intends to pay 350p per share (£410m) for the entire issued and to be issued share capital of Numis Corporation.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The rally in Numis share price was expected, given the significant premium that Deutsche Bank was willing to pay for Numis. The deal is structured so that Numis shareholders will receive 339p in cash for each share they own, with the remaining 11p will be paid in the form of two interim dividends of 6p and 5p each.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Investors cheered the news, given that the acquisition will give Deutsche Bank access to over 170 corporate clients in the UK, whom it will continue providing comprehensive financial and advisory services. The takeover will accelerate Deutshce Bank’s Global Hausbank strategy by allowing it to engage with UK corporate clients more deeply.
The management boards of the two companies are convinced that the transaction represents an exciting opportunity to combine Deutsche Bank's existing UK and Ireland corporate finance business with Numis to establish a leading force in UK investment banking.
The enlarged entity will have a prominent position across corporate broking, equity and debt capital markets, strategic advisory (including growth capital and M&A), equity research and sales and execution. Numis clients can now access Deutsche Bank’s global products across its International Private Bank and Corporate Bank.
Deutsche Bank reiterated that the UK remains the largest investment banking market in Europe and that it has been considering how to accelerate the growth of its UK business before deciding on the Numis acquisition.
Choosing Numis was easy since it is a diversified investment bank with a reputable UK franchise and a long history of delivering superior client service. The company also has a long track record of growth and represents a compelling strategic fit for Deutsche Bank.
Deutsche Bank will pay £410 million to acquire Numis Corp at a 72% premium. However, investors think the acquisition is a good bet since the bank’s shares were trading flat at writing.
*This is not investment advice.
Numis share price.
The Numis share price soared 64.42% to trade at 342.50p, from Thursday’s closing price of 208.3p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.