River and Mercantile proposes £180m payout for shareholders after Schroders sale

Full sale announced last month for £228m

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CEO of River and Mercantile James Barham
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CEO of River and Mercantile James Barham

River and Mercantile Group (RMG) has proposed returning £180m to shareholders following the completion of the sale of its UK solutions business to Schroders.

The company announced the sale of its UK fiduciary management, advisory and derivatives business on 26 October for £228m.

Today (24 November), it said it plans to return £180m of that to shareholders, with the remainder to be retained to support RMG's future growth strategy. The UK solutions division had £42bn of assets under management as of 30 September 2021.

The sale is subject to the approval of the company's shareholders at a general meeting, which will be held on 13 December.

This move comes following news earlier this week of a bidding war between Premier Miton Group and AssetCo for the remainder of the River and Mercantile business.

R&M bidding war reaction: AssetCo slightly better fit

CEO of RMG James Barham said last month: "We have worked hard during this process to not only achieve the optimum valuation for shareholders, but also find the very best partner for our clients and people.

"I have been encouraged by the strong interest shown by the bidders and I believe that Schroders is the right choice and represents an excellent owner for the long-term future growth of the business."

Schroders group chief executive Peter Harrison last month added: "This acquisition further enhances our ability to meet the increasingly complex needs of pension fund clients and is consistent with our growth strategy.

"The business brings with it a well-respected team, with a strong track record of success and is a good cultural fit with Schroders. We see significant opportunities from this partnership."

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