Midas to dispose of offshore fund operations

Midas Capital will sell off £62m in Guernsey and South African-based offshore funds over the next month in the final disposal of its non-core assets.

The group will sell its Guernsey-based Midas Capital International company to MitonOptimal International - with the Cape Town-based Midas Capital Asset Management offloaded to a consortium led by the offshore group's CEO and former MitonOptimal joint managing partner Scott Campbell.

Both groups are operating funds under the MitonOptimal brand, which includes a £30m offshore mirror of Martin Gray's popular Special Situations Portfolio.

Midas Capital will receive a cash payment of £300,000 as well as a dividend pre completion of surplus net cash in the two offhore companies, amounting to approximately £270,000.

For the year ended 31 December 2009, the offshore groups had combined revenues of £1.6m, incurred a pre-tax loss of £292,000 and had a net book value of £298,000.

The sale completes Midas' disposals of non-core assets, following the sale of its corporate advisory and wealth management arms over the past six months.

"The disposals of Intelli, iimia Wealth Management and international fund management subsidiaries will allow the Group to concentrate on organic growth, further reductions in gearing and protecting and building Shareholder value," Midas Capital chairman and CEO Colin Rutherford says.

"The market in 2010 looks set to pose challenges, however I believe that our business is now well placed with our mix of products, experience and young talent to build our position as a major player in the multi-asset fund management sector."