Mattioli Woods PLC on Friday accepted an offer from Pollen Street Capital Ltd valuing the business at £432 million.

The Leicester, England-based specialist wealth and asset management business said the all-cash bid was worth 804 pence per share, a 34% premium to Thursday’s closing price of 600.00p.

Shares in Mattioli Woods jumped 32% to 793.00p each in London on Friday.

Shares in Pollen Street Capital were unchanged at 550p each on Friday.

In addition, Mattioli Woods shareholders will entitled to receive the previously declared interim dividend of 9p per share to be paid on March 22.

Pollen Street Capital, a London-based alternative investment management company, said it believed that Mattioli Woods would benefit from ‘transitioning to private ownership with the support of a growth-focused shareholder, who can provide the capital and longer-term view of value creation’.

Mattioli Woods said it considered the terms ‘fair and reasonable,’ and unanimously recommended shareholders accept the offer.

The company described the offer as ‘attractive’ and believed that the delivery of its strategy would be both ‘slower and more uncertain without considerable further capital funding’.

Raising further funds would ‘be difficult’ at the current share price without materially diluting existing shareholders, Mattioli Woods explained.

Mattioli Woods pointed out the wealth and asset management industry has seen a wave of consolidation activity in recent years reflecting the drive for scale and technology.

‘Pollen Street Capital brings significant financial and strategic resources to accelerate the delivery of Mattioli Woods’ M&A strategy and organic growth plans,’ the company noted.

Mattioli Woods said investors representing 12.4% of the company’s share capital had given their backing to the deal.

The transaction will be implemented by way of a scheme via Tiger Bidco Ltd, a wholly-owned subsidiary of Pollen Street Capital.

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