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Offer period for potential River and Mercantile acquisition extended

Calendar deadlineThe board of River and Mercantile Group has approved an extension to the date by which AssetCo has to announce either a “firm intention” or confirm that it does not intend to make an offer for the acquisition of River and Mercantile.

According to the board, the announcement must be made by 5:00pm on 18 January 2022. The extension will allow time for a potential offer for the remaining River and Mercantile Group (RMG) Asset Management business.

In November, Premier Miton and AssetCo approached with separate merger and acquisition offers.

The AssetCo board said that it believes that River and Mercantile Group Asset Management and AssetCo are “highly complementary” and that the combination of the two firms would create significant value for the combined group’s clients, portfolio managers, employees, and shareholders.

Meanwhile, AssetCo directors also said they believe that there is “material value” in leveraging other elements of the AssetCo business and strategy to increase the value of RMG Asset Management, as well as widen investor appeal.

Campbell Fleming, chief executive of AssetCo, said: "We note that the board of River and Mercantile Group has agreed to an extension of the offer period. This should allow sufficient time to finalise a potential offer to acquire River and Mercantile (excluding its Solutions business) for the benefit of both AssetCo and River and Mercantile shareholders.”

"River and Mercantile has great potential as an active equity and infrastructure investment manager with people, clients and product offering that would complement our existing businesses,” added Fleming.

“It will also accelerate, and be a core part of our focus on, building an agile 21st century asset and wealth management business that meets the needs of investors.”

AssetCo confirmed that a further announcement will be made in due course.

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