Anexo Group plc (AIM: ANX), the specialist integrated credit hire and legal services provider, is pleased to announce a new major shareholder and to provide a trading update in respect of H2 2020 to date. The Group announces today that it and its controlling shareholders have entered into agreements with leading private equity firm DBAY Advisors Limited (‘DBAY’).
DBAY has agreed to acquire a minority stake of 29.0% of the issued share capital of the Group from Alan Sellers, Samantha Moss and Valentina Slater at a price of 150 pence per share.
Alan Sellers, who founded the Group in 1996, will continue in his role as Executive Chairman. Samantha Moss will remain as Managing Director, Bond Turner, and Valentina Slater will remain as Sales Director, Direct Accident Management Limited.
DBAY is an international asset management firm with offices in the Isle of Man and London. It set up its first investment vehicle in 2008 and now manages investments on behalf of institutional investors, family offices, pension funds, trusts and foundations in various funds. DBAY is owned by members of the firm on a partnership basis.
The Group plans to work closely with DBAY to continue the expansion of its Credit Hire and Legal Services divisions and is committed to the creation of value for all its shareholders.
Alan Sellers, Executive Chairman of Anexo, said: “We are delighted to welcome DBAY as a major shareholder in the Group. They have an excellent track record of smaller company investment and we look forward to working closely with them to achieve growth across our various business divisions.”
DBAY partner and Chief Investment Officer, Saki Riffner, said: “We are excited to invest in Anexo alongside Alan, who has built the business over the last 25 years, and we are looking forward to working closely with him and his team to drive the future growth of the Group.”
DBAY will initially acquire 9.9% of the issued share capital of the Group. Following receipt of the necessary regulatory approvals from the Financial Conduct Authority and the Solicitors’ Regulatory Authority, DBAY will then acquire an additional 19.1% shareholding in the Group, resulting in an aggregate stake of 29%. Subject to these regulatory approvals, the second part of the transaction is expected to be completed within three months of this announcement.
Upon completion of the second part of the transaction, DBAY will have the right to appoint up to three Non-Executive Directors to the Group’s Board of Directors. At the same time, the Group will enter into an agreement with DBAY which restricts any material changes to the Group’s existing business model, including acquisitions, disposals and/or debt finance, without the majority consent of DBAY’s representatives on the Board of Directors.
It is anticipated that Alan Sellers, Samantha Moss and Valentina Slater will give undertakings which preclude any further disposals of their remaining shareholdings for a period of eighteen months following completion of the second part of the transaction. At the end of this period, they will undertake for a further twelve month period not to sell any part of their individual or collective holdings below the price of the transaction.