Blue Oar buys stockbroker
Article Date: Jun 02 2008Blue Oar, an investment bank and stockbroker, is to expand internationally after buying a City-based stockbroker. The group paid £1.67 million for Astaire & Partners, which also acts as a discretionary fund manager on behalf of private clients in the UK and overseas.
The consideration included £1.5 million in cash with the balance satisfied in 1.3 million shares at 13p each.
The deal will especially benefit Blue Oar’s Australian business through Astaire & Partners’ connections in Singapore and Malaysia.
Blue Oar chief executive Andrew Monk says the deal complements the company’s operations and increases its funds under management.
Monk adds: 'The acquisition is in line with our strategy of investing in our future growth, taking advantage of acquisition opportunities presented by current market conditions and that our strong balance sheet enables us to make.
'Blue Oar has a clear strategy to create a specialist investment bank with long-term stable earnings and this acquisition helps in achieving this.'
Blue Oar was founded in 1995 and is the holding company for three financial services businesses: Blue Oar Securities, an institutional investment banker; investment adviser Inteq; and Rowan Dartington, a private client stockbroking and asset manager. The group received £18.9 million in fee and commission income during 2007, producing a pre-tax profit of almost £2 million.
Astaire was established in 1960 to provide traditional stockbroking services, but has since developed a global network of counterparties to support its international clients. In the year to September 2007, Astaire made a £500,000 pre-tax profit from a £3.1 million turnover.
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