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Ambrian Capital / VSA Capital

  • BY: Andrew Hore |
  • POSTED: 15/02/2011 |

VSA Capital, which has just changed its name from Third Quad Capital, admits that it has approached Ambrian Capital about a potential merger but says that it has not made a formal offer.

VSA says that it is not in talks with Ambrian. This statement means that VSA will not be able to make an offer for six months, unless it is recommended by Ambrian or circumstances change.

It is unclear whether VSA, which is run by former Blue Oar boss Andrew Monk, is purely interested in Ambrian’s broking arm or in the other parts of the business as well. 

VSA is a corporate adviser and broker focused on mining companies. Ambrian’s broking business is also focused on mining and resources, as well as cleantech. Ambrian is also a metals trader and LME broker. Last year, Ambrian started a business trading in oil and biofuels. There is an investment portfolio including some substantial stakes in businesses.

Along with many other brokers Ambrian had a good end to 2010. This meant that pre-tax profit will be “substantially ahead” of the £1.82m estimated in December.

VSA recently completed the sale of its software business so that it could concentrate on its finance activities.

Rivington Street is paying £1.3m for the software - £200,000 on completion and eleven monthly payments of £100,000. That won’t go very far when it comes to Ambrian. A lot more cash would be need to be raised and/or millions of shares issued to acquire Ambrian.

Shares in Ambrian have risen by one-third in the past month but they fell 0.75p to 31.38p, which values the company at £33.6m. At 0.72p a share, VSA is valued at £4.47m. 

Download the February edition of AIM Journal at http://www.hubinvest.com/AIMPDFFebruary2011_17.pdf

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