Investec buys Evolution Group for £233m

South African banking group Investec has tabled a recommended offer for broking and wealth management group Evolution that values the group at £233m.

Investec, which had been competing against Canadian group Canaccord Financial for Evolution, said would pay 100.24p per share, a 6.6 per cent premium on yesterday’s closing price – but almost a 45 per cent premium over Evolution’s three month average price.

Major Evolution shareholders BlackRock and Majedie Asset Management, which together own 11.7 per cent of Evolution, have agreed to back the offer, Investec said.

“The transaction strengthens our position in the UK, giving us greater scale in both private client wealth management and investment banking,” Investec chief executive Stephen Koseff said.

“Investec is an excellent home for the two main businesses within Evolution providing an excellent cultural fit for both employees and clients,” Evolution chief executive Alex Snow said.

“Williams deBroë will be able to maintain its growth and continue to provide its clients with a best in class independent wealth management service. Evolution Securities will benefit from being part of a larger well-capitalised investment bank with a strategy to be the leading mid-market investment bank in the UK.”

The offer will also respect a 1p per share interim dividend announced by Evolution in July.

The Evolution’s directors, which together own about 2.6 per cent of the company, will unanimously support the offer.

Credit Suisse has advised Evolution, while Investec Investment Banking advised Investec.