River Global has reached a conditional agreement to transfer its entire asset management business to Liontrust Asset Management.

The deal involves the sale of River Global Holdings Limited, the group’s asset management holding company.

Under the agreed terms, Liontrust will pay an initial £7.6m ($10.1m) in shares.

A further payment of up to £2.1m, also in shares, is contingent on certain revenue targets being met within a year after completion.

Upon deal completion, River Global’s fund management operations are set to become part of Liontrust’s wider range of offerings.

As part of the agreement, Martin Gilbert, currently chairman of River Global, is expected to join the Liontrust board as a non-executive director after the sale closes.

Since its rebranding from AssetCo in 2021, River Global has focused on building an asset management operation through several acquisitions and streamlining its organisational structure.

The Board of River Global has unanimously recommended shareholders approve the sale at an upcoming general meeting.

Martin Gilbert and Christopher Mills, who together own 22.3% of River Global’s shares, have agreed to support the transaction and retain their Liontrust shares for at least two years after completion.

If shareholder and regulatory approvals are obtained, the sale is planned to complete by 31 August 2026.

With this sale, River Global would no longer operate or control any significant trading business or assets.

Its shares are expected to be suspended from AIM trading under market rules, with possible cancellation of trading if the suspension lasts more than six months.

Following the transaction, River Global will not have operating cash flow and will rely on funds provided under the agreement for working capital.

The Board has not confirmed whether it will seek a reverse takeover, re-admission to AIM, or cancellation of its AIM listing after completion.

"River Global to sell asset management arm to Liontrust" was originally created and published by Private Banker International, a GlobalData owned brand.

 

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