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Shares in wealth manager Quilter jumped 14.6% as NatWest weighs bid

Shares in wealth manager Quilter jumped 14.6% as NatWest weighs bid

  • Shares jumped 14.6 per cent, or 15.3p, to 120.3p after the Mail on Sunday reported the banking giant was in the early stages of exploring a bid to join the FTSE250 wealth management
  • City sources said private equity firms including CVC, Bain Capital and BC Partners had also shown interest in recent weeks.

Shares in Quilter jumped to a two-month high after reports it was in the spotlight at NatWest.

Shares jumped 14.6 per cent, or 15.3p, to 120.3p after the Mail on Sunday reported the banking giant was in the early stages of exploring a FTSE250 bid.

City sources said private equity firms including CVC, Bain Capital and BC Partners have also expressed interest in recent weeks.

Shares in Quilter jumped to a two-month high after reports it was in focus for NatWest

Quilter and NatWest declined to comment. However, if NatWest were to take over the business, it would be the biggest acquisition for the lender since it went into taxpayer ownership at the height of the financial crisis with a £46bn bailout.

Quilter, which is worth almost £1.5bn, is seen as one of many wealth management firms that lack the scale and investment to compete with the sector’s bigger players.

Its shares have fallen nearly 37 percent in the past 12 months and are worth 17 percent less than their offer price when it went public in 2018 following the collapse of its parent, financial services company Old Mutual.

Quilter has moved up NatWest’s list of potential targets as the bank looks to grow its wealth management business. In June, NatWest chief executive Alison Rose said the bank had “significant excess capital” and would consider an M&A deal that could add “compelling shareholder value”.

The bank already owns Coutts, whose clients include the Queen, members of the aristocracy and wealthy City professionals. But a deal to buy Quilter would extend those services to “massively affluent” middle-class families with more than £100,000 of spare cash to invest.

NatWest is also believed to be looking at other financial services businesses, although their plans are still in the early stages. Predictions of an attack on Quilter come after NatWest last month predicted its operating profit would hit £1.5bn in the second quarter of this year, up 20 per cent on the same period last year.

The takeover will also be the latest in a series of deals in the asset management industry, with 230-year-old firm Charles Stanley being snapped up by US rival Raymond James for £279m last year. In April, London-based Brewin Dolphin was acquired by Royal Bank of Canada for £1.6bn, and in March Aviva acquired Succession Wealth Management for £385m.

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Shares in wealth manager Quilter jumped 14.6% as NatWest weighs bid

Source link Shares in wealth manager Quilter jumped 14.6% as NatWest weighs bid

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