AssetCo has reached an agreement to acquire the entire issued share capital of Ocean Dial Asset Management for a total consideration of £4.1m.
The deal will see the Martin Gilbert-chaired asset manager add emerging markets capabilities to its repertoire, with a particular focus on India, bringing the India Capital Growth Fund investment trust under the River and Mercantile banner.
Split between cash and shares, the offer will see AssetCo purchase 2,928,258 ordinary shares of ODAM for a penny each, with the remainder of the offer satisfied by £2.1m in cash.
Of this, 732,065 shares and £500,000 will be deferred until after the calendar year, in accordance with the provisions of the sale and purchase agreement.
Subject to regulatory approval from the Financial Conduct Authority, Reserve Bank of India and Securities Exchange Board of India, the completion of the deal is likely to run into Q3 2023.
Management of India Capital Growth Fund will remain "business as usual", with the full investment team led by Gaurav Narain remaining in position.
However, UK directors of ODAM David Cornell and Robin Sellers will stand down from their positions following the transition of the company.
AssetCo chair Gilbert said he was "delighted" to welcome the firm, adding that he was "excited about the long-term potential that India offers".
"[We] see opportunities to add value by bringing Ocean Dial together with the other active equity asset management businesses we are combining under the River and Mercantile brand," he said.
India Capital Growth Fund chair Elisabeth Scott added: "The board of ICGF supports this transaction and welcomes ODAM's move in ownership to a more fully resourced UK asset management group.
"We are also delighted that the successful investment team in India, led by Gaurav Narain, continues unchanged."
