Bob Diamond’s New York-based private equity firm, Atlas Merchant Capital, has joined forces with QInvest, the Qatari investment bank, to buy Panmure Gordon - one of Britain’s oldest stockbrokers.
QInvest already owns a 43% stake in Panmure.
The deal values the entire issued share capital of Panmure at about £15.5mln, the stockbroker confirmed in a statement on Friday.
Under the terms of the acquisition, Panmure shareholders will receive 100p in cash for each scheme share, representing a 68.1% premium to Panmure’s closing price of 59.5p on Wednesday.
The deal thrusts Diamond back in the London financial spotlight after he resigned as chief executive at Barclays following the scandal over the bank’s manipulation of Libor interest rates in 2012.
Barclays was fined £59.5mln by the Financial Services Authority for rigging Libor and Euribor rates.
It is understood Diamond will play no active role in Panmure’s activities and since he will not be in a regulated position he will not have to seek approval from the City regulator.
On today’s deal, the head of Diamond’s private equity firm Atlas in the UK and Europe, Matthew Hanson, said:
"We believe there is significant opportunity for Atlas, in partnership with QInvest, to apply our operational skills and financial services expertise to enhance Panmure Gordon's strong reputation and build a larger, successful boutique investment bank.
“This long term stabilisation and development can only realistically be achieved as a private company, out of the glare of the public market and the effects of share price movement."