News blog
Astaire Group/ Evolve Capital
- BY: Andrew Hore |
- POSTED: 13/04/2010 |
Aim adviser Astaire Group has discovered a £1.4m black hole in its subsidiary Rowan Dartington’s accounts.
Shares in Astaire have been suspended at 3p each, which values the company at £6.22m.
Astaire’s majority shareholder Evolve Capital has also had its shares suspended. The bulk of £1.4m shortfall apparently happened before Evolve bought its stake in Astaire. At 3.25p a share, Evolve is valued at £5.79m.
The “potentially irrecoverable debtor balances of up to £1.4m” at retail broker Rowan Dartington were discovered during an audit following the posting of the offer document for Hoodless Brennan.
Astaire says that the £1.4m is not client money. Astaire will be able to make up any deficiency in Rowan Dartington’s regulatory capital from its own cash pile.
The £1.4m shortfall does affect calculations required by the FSA for the acquisition of Hoodless Brennan. This means that Astaire can’t get FSA approval for the acquisition at the moment. Hoodless Brennan shareholders are being given the opportunity to withdraw their acceptances for the bid by 8 May.
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