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Interactive Investor to buy the Share Centre for £61.9 million

13:06, 17th February 2020
Abraham Darwyne
Company News
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The Share Centre (SHRE)FOLLOW revealed on Monday that they reached an agreement with Interactive Investor to sell the company in a £61.9 million cash and share deal. 

Interactive Investor said there was strong strategic rationale for the transaction, stating that direct to consumer platforms require scale to sustain the level of profitability necessary for significant and ongoing technology investment in customer experience and services.

"We are delighted with this transaction” said Richard Wilson, CEO of Interactive Investor, “The firms' shared values and combined strengths reinforce the ii Group's position as a leader in the retail investment services marketplace.” 

He added: "Combining our individual strengths brings further scale and the opportunity to deliver enhanced value, service and customer experience to an enlarged customer base.”

Shares in SHRE surged 13.79% to 33p during Monday trading

SHRE price chart

According to the deal, Share investors would receive 4.1p in cash and a proportion of a new share of Interactive Investor’s parent ii for each Share share. 

The price was based on a valuation of £441.62 per new II share, valuing each Share share at 41p. This represents a 41 per cent premium on Friday’s closing price. 

Commenting on the Offer, Gavin Oldham OBE, Executive Chairman of Share plc said: "I am delighted to welcome this combination of our businesses, designed to transform the prospects for individual share ownership and personal investment across the United Kingdom.”

“Our shareowners, employees and customers are well aware of my passion for egalitarian capitalism, not only right across society but also across generations.”

Interactive was advised by Rothschild & Co and Share by Stephens in the transaction. 

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