James Hay has postponed the publication of its offer document for its proposed takeover of Nucleus to April 13.
The deal, initially intended as a court-sanctioned scheme of arrangement, was switched to a takeover offer last week (March 30).
According to James Hay, the method “offers greater certainty of execution” as it would be able to push the £145m deal through with backing from a smaller majority of Nucleus members.
Under the original strategy, James Hay had to achieve approval from at least 75 per cent of Nucleus shareholders. This new strategy means the firm only has to gain approval from 50 per cent of all shareholders.
The board of Nucleus and Sanlam, both in favour of the sale, hold over 50 per cent of the company between them.
In a statement to investors this morning (April 9), Nucleus confirmed that all other aspects of the timetable remain unchanged, including the first closing date, which will continue be the date falling 21 days after the publication of the offer document.
The takeover intends to merge the operations of the two firms to create a financial planning and retirement-focused adviser platform, with ambitions to increase investment in technology, products and services for the adviser community.
It is expected that Nucleus will be shifted from the Bravura technology it currently uses to FNZ. Some job losses at Nucleus are also anticipated.
In March, Nucleus posted a 46 per cent fall in profits – a consequence of the pandemic – but chief executive David Ferguson said that its decision to continue to invest throughout the pandemic was “the right decision”.
James Hay appointed a new CEO in September last year, bringing Richard Rowney to the firm from LV.
Tom Higgins is a freelance reporter for FTAdviser
