Panmure Gordon welcomes QInvest as significant new shareholder
The Board of Panmure Gordon is delighted to announce that, following a detailed review of all proposals received, the Company has conditionally raised approximately £23 million before expenses in a Placing with QInvest LLC (“Qinvest”) of 67,514,813 new ordinary shares (“Ordinary Shares”) in the Company (the “Placing Shares”) at a price of 34 pence per Ordinary Share (the “Placing”).
Following the Placing, QInvest will own approximately 44% of Panmure Gordon’s enlarged share capital on a fully diluted basis (1).
Strategic investment in Panmure Gordon by QInvest
• QInvest is Qatar’s largest investment bank with US$1 billion of authorised capital and investments in the Middle East, UK, continental Europe and the US.
• Shahzad Shahbaz, CEO of QInvest, spent 25 years with Bank of America where he was, until 2006, based in London as head of regional investment banking for Europe, Middle East, and Africa. Subsequent to this, he was CEO of the Emirates NBD Investment Bank in Dubai.
Placing will significantly enhance Panmure Gordon’s balance sheet
• On a pro-forma basis, the Group will have regulatory assets of approximately £45 million, representing over 3.5 times the regulator’s required minimum.
• The enhanced balance sheet strength will further enable the Group to execute client transactions and to be a counterparty of choice for institutional investors.
QInvest is an outstanding strategic partner that will enhance Panmure Gordon’s business
• The investment by QInvest will give Panmure Gordon the financial strength to grow into new business areas and new geographies.
• Panmure Gordon, through both QInvest and existing shareholder relationships, will have access to significant pools of capital in the Gulf region.
• QInvest and the management of Panmure Gordon believe there is significant opportunity to leverage Panmure Gordon’s brand and reputation to service institutional and corporate clients in the Gulf region.
• QInvest is a long-term investor and highly supportive of Panmure Gordon’s management.
Board strengthened with addition of four new non-executive directors
• Panmure Gordon’s board will be expanded to 10 directors with the addition of four new non-executive directors to be nominated by QInvest.
• The proposed four new directors comprise highly experienced global investment banking, wealth management and hedge fund professionals, with specific expertise in building successful financial services businesses.
Tony Caplin, Chairman of the Board, said:
“With our independent advisers, the Board applied a formal process to review rigorously the proposals put forward by parties interested in investing in the Company. We wish to put on record our appreciation of all the parties for their interest in the Company and their clear desire to see the firm grow and prosper. BlueGem and SPQR Capital are outstanding firms and on behalf of the Board, I thank them for their conduct and adherence to the spirit of the process. We very much hope that we can work with them in the future.
“Following the detailed review and after consultation with major shareholders, I am pleased to announce that the Board has selected the proposal put forward by QInvest on the basis of their shared vision for the Company’s future, the exceptional contacts they provide in the Middle East and their outstanding potential to drive new revenues through Panmure Gordon for the benefit of all the firm’s stakeholders.
“We are pleased that QInvest recognised the firm’s substantial value, demonstrated by it proposing the highest subscription price. QInvest is deeply supportive of the firm’s management and I look forward to welcoming the new non-executive directors to the Board.
“Following the Placing, Panmure Gordon will have a robust balance sheet and, through QInvest’s unique contacts and expertise, every opportunity to achieve strong growth in the coming years.”
Shahzad Shahbaz, Chief Executive Officer of QInvest, said:
“Our investment reflects the strength of our desire to work with the Board and Tim Linacre over the coming years. We see the firm continuing to provide outstanding service to clients as it builds on its strengths as a leading independent corporate stockbroker and investment bank in the UK and as a leading growth-focused investment bank in the US. Allied to QInvest’s Middle East capabilities, investment management and investment banking expertise, we are confident of leveraging the Company’s platform to create outstanding shareholder value.”
A circular will be posted to shareholders shortly.
Advisers to Panmure Gordon: ING Corporate Finance as corporate finance adviser; Berwin Leighton Paisner LLP as legal adviser; and Financial Dynamics as communications adviser.
Advisers to QInvest: Qinvest Investment Banking and PricewaterhouseCoopers as joint corporate finance advisers, Lovells (Middle East) LLP as legal adviser and Hill & Knowlton as communications adviser.
Stephen Davie, Hill & Knowlton: +973 3941 8426
Susie Pagan, Hill & Knowlton: +971 50 550 7520
Arpana Bhandari, Hill & Knowlton: +9714 4055614
Steve Cater and Andrew Perkin, PricewaterhouseCoopers: +44 (0)20 7583 5000
Notes to editors:
Qatar's largest investment bank, was licensed by the Qatar Financial Centre Authority in April 2007 and is regulated by the Qatar Financial Centre Regulatory Authority. The Bank has authorized and paid-up capital of US$1 billion and US$500 million, respectively
QInvest has created a world class investment banking capability offering a broad range of investment, financing and advisory services under Sharia'a compliant structures, with the highest standards of governance and transparency.
The firm is distinguished by the strength of its shareholder structure, including Qatar Islamic Bank and Gulf Finance House, as well as prominent individuals from Qatar and the region.
About the Panmure Gordon Group
Founded in 1876, Panmure Gordon & Co (PMR.L) is a leading independent mid-cap institutional stockbroker and investment bank. Encompassing its US franchise, ThinkEquity, LLC, the Group employs approximately 250 professionals across the US, the UK and Nyon, Switzerland, offering a blend of transatlantic financial services including research, sales and trading, wealth management and asset management. www.panmure.com and www.thinkequity.com
1 Existing share capital enlarged for issuance under the Placing and taking into account in the money options.