MAM Funds plc, the AIM quoted fund management group, announces an agreement in principle to strengthen the existing management team and raise additional capital to enhance the existing Group strategy to build a leading investment management business.
Highlights
• Agreement in principle of proposals to extend existing strategy, strengthen existing management team and raise additional capital
• Proposed appointment of Directors:
- Ian Dighé as Executive Chairman
- Gervais Williams as Managing Director
- Graham Hooper as Distribution Director
• Extension of existing successful strategy to build a leading fund management business with strong organic growth potential
• Planned raising of up to £20 million new equity at 33p per share
• Planned repayment of all existing Preference Shares, accrued interest thereon and outstanding debt
• Proposals subject to finalisation, shareholder approval, consent of Lloyds Banking Group, necessary regulatory consents and completion of fundraising
Colin Rutherford, Chairman and CEO, MAM Funds plc, said:
“Since taking over the helm, the Group has undergone a significant turnaround. Non-core businesses have been divested and the focus is now firmly on fund management. We now have a stable platform and with the proposed new equity investment and the addition of new management of the calibre of Gervais Williams and his colleagues, the business is well placed for the next stage of its development.
“These proposals mark a watershed for MAM Funds as we move firmly out of reconstruction mode, having maintained our quoted status, and towards operating with a planned debt-free balance sheet. In handing over to the new team, I would like to pay tribute to the support of Lloyds Bank, all staff at MAM Funds, our customers and stakeholders for their support through the reconstruction phase.”
Ian Dighé said:
“We believe the proposed transaction heralds the beginning of a new phase for the growth and development of MAM Funds. There is a significant market opportunity to build a leading fund management business and we believe that a new management team and strengthened capital base will provide the foundation for MAM Funds to exploit this opportunity.”
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