Davy agrees deal to buy out Prescient
Davy Stockbrokers has inked a deal to buy out €2bn Prescient Asset Management Holdings (Ireland) Limited.
Prescient Ireland, which was formerly AIB Investment Managers, has around €2bn under management and 57 staff. AIB sold the unit to listed South African financial group Prescient in 2012 for around €6.5m. It is thought that Prescient will have just broken even on the transaction.
The deal will also see the €150m pension fund of the Irish League of Credit Unions (ILCU) return to the Davy stable. The ILCU and Davy were involved in bitter squabbling when credit union investment products blew up. Davy has 100 of the country's top credit unions on its book, managing about €1.5bn in pension assets for the credit union industry.
The sale is subject to Central Bank of Ireland approval.
"Davy is pleased, as an Irish firm, to have the opportunity to acquire a quality business," said Davy chief executive Tony Garry.
According to Prescient chief executive Herman Steyn: "Having completed a strategic review of our businesses in Ireland, Prescient has decided to concentrate and build on our Irish-domiciled QIF and UCITS funds and on fund administration through our subsidiary Stadia Fund Managers. Part of the transaction with Davy is that we will continue to provide Davy with fund administration services for certain CIS portfolios."
The Prescient buyout is the second raid on its rivals by the country's biggest stockbroker. Last year, Davy bought out part of Bloxham Stockbrokers as the broker was submerged by financial difficulties.
Davy is also believed to be close to inking a deal to buy its near €140m in Anglo loans from liquidators KPMG. Davy has already repaid a large slug of its Anglo debt and is expected to be refinanced by Bank of Ireland.