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SovGEM

  • BY: Andrew Hore |
  • POSTED: 06/05/2009 |

Aim adviser Hanson Westhouse is reversing into Aim-quoted investment company SovGEM.

Shares in SovGEM were suspended at 8p each, which values the existing company at £1.82m. On 26 November 2009, the company’s net asset value was 15.5p a share. The company‘s directors estimate that the NAV is currently around 14.9p a share.

The deal is expected to value Hanson Westhouse at £3m plus £258,000 raised in a recent placing. At an estimated 11.9p a share, SovGEM is valued at £2.71m. There are plans to raise up to £850,000 to finance the costs of the deal and working capital for the enlarged business. The company will also repay £125,000 worth of convertible loans.

SovGEM appointed Hanson Westhouse as its nominated adviser and broker in October 2008 but subsequently appointed Smith & Williamson as nominated adviser in March 2009.

Hanson Westhouse was formed out of the old Brown Shipley and has existed in its current form since 2004. It has 30 employees and 32 clients. Most of which are on Aim.

Hanson Westhouse boss William Staple will become chief executive of the quoted holding company. The company will have a large number of individuals experienced in the smaller companies market on its company board and its advisory board. They include Beeson Gregory (Evolution) founder Andrew Beeson, KBC Peel Hunt founder Christopher Holdsworth-Hunt and former Hoare Govett boss Peter Meinertzhagen.

Hugh de Lusignan and Douglas Kearney will not be on the board but they will continue to manage SovGEM’s investments.

SovGEM will consolidate five existing shares into one new share.

Further details will be published in the admission document. 

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