News blog
STM Group
- BY: Andrew Hore |
- POSTED: 13/07/2009 |
STM Group is buying Luxembourg-based Citadel for up to €1.88m.
This widens the geographic range of STM’s trust and corporate services operations, which are mainly based in Gibraltar and Jersey. Citadel has 170 company accounts and 33 trusts under management. Most of the clients are from northern Europe or South Africa. The Citadel group of companies was set up in 1992.
STM will pay a minimum of €980,000 in cash and shares - issued at 40p each. The other €900,000 is dependent on performance.
Citadel made profit after tax of €400,000 on revenues of €1.13m in 2008. The deal will be immediately earnings enhancing and joint broker FinnCap believes it will increase earnings per share by 10% next year. The deal is dependent on approval by the Luxembourg authorities - which should happen in September 2009.
At the beginning of July, Luxembourg was removed from the ‘grey list’ of countries that the OECD believed lacked financial transparency. STM believes that the new jurisdiction will enhance its activities thanks to its network of double tax treaties.
At 35p a share, STM is valued at £15m. Last week’s profit warning hit the share price.
© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- Browse by issue
- All issues
- Popular tags
- All tags
- AIM Micro feeds
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds
|