Kingswood’s private equity backer HSQ Investments has placed an offer to acquire all its remaining shareholding in the business and plans to merge it with another wealth firm.
In a statement today (18 March), Pollen Street Capital subsidiary HSQ put an unconditional cash offer to acquire the entire issued and to be issued ordinary share capital of Kingswood not already held by HSQ at a price of 7 pence per ordinary share.
The update follows a previous statement on 12 March that Kingswood was in advanced talks to sell its entire shareholding.
The PE firm also flagged how Kingswood’s acquisition strategy has seen the company’s debt position “increase significantly” over the last two years, rising from a net cash position of £39.7m to a net debt position of £48.1m as of 31 December 2023.
HSQ said it would consider a merger of Kingswood’s UK and Ireland operations with another wealth management company.
“HSQ believes that this has the prospect of delivering the long-term capital investment that the UK and Ireland operations require which would provide all advisers and clients within these businesses an exciting opportunity for growth,” it said.
