12 Feb, 2008
Published: 07:45 Tuesday 12 February
By: Charlie Parker, Investment Editor
MItonOptimal is acquiring Liverpool-based multi-asset fund
management group Midas Capital Partners.
After the move the combined group is planning to keep the Midas
The merger which has been agreed with Midas' fund manager
owners Simon Edwards and Alan Borrows will see arguably the two
most successful niche multi-asset fund management boutiques merged
together. It comes just months after the merger of Iimia and
To finance the acquisition Iimia MitonOptimal is proposing the
issue of 27.5 million new shares as well as a payment of £59
million in cash, a sum which will largely go to Edwards and
Burrows. The cash will be raised partly through the issue of a
further seven million shares at 150p a share. The move values Midas
at £100.3 million.
Edwards and Borrows will commit to support the combined group and
will invest £20 million into the group's products as well
as becoming substantial The combined group would have £2.9
billion invested in multi-asset strategies.
The chief executive of Iimia MitonOptimal Michael Philips said:
'We are excited about the future following the merger with
Midas Capital Partners, one of the fastest growing fund management
businesses in the UK. The merged group will be a leading
multi-asset fund management company with one of the best resourced
and most experienced investment teams operating in the UK.
Edwards said: 'We are delighted with the progress we have made
since inception in 2002 which has been based on a simple business
model and strong investment returns since launch.
'The merger with iimia MitonOptimal represents a new chapter in
our history and provides an infrastructure which will enable a very
strong investment team to focus on achieving good investment
performance for clients. Our confidence in the investment products
of the merged group is demonstrated by the Midas management team's
commitment to reinvest a substantial proportion of the cash
received, at least £20m, into these products.'