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WH Ireland, the wealth management group, is in talks about an all-share merger with Team, another London-listed operator in the sector.
Sky News has learnt that the two companies are in advanced discussions about a deal that could value WH Ireland at more than 4p-per-share – roughly eight times the value of a rival transaction which was voted down by its shareholders last month.
Sources said the deal, if completed, would create a larger player in the UK wealth management market, although the companies are relative minnows with a combined market capitalisation of just £20m.
Both WH Ireland and Team declined to comment.
The value that the prospective deal places on WH Ireland’s stock may prompt questions from its shareholders about why a transaction worth a fraction of its value received a recommendation from its board and advisers.
Last month, Sky News revealed that the £1m sale of WH Ireland’s wealth management division to Oberon Investments was on the brink of collapse after a group of investors moved to block it.
WH Ireland’s wealth arm has about £830m of assets under management, while Team has total assets under management or administration of more than £1bn.
The former’s biggest shareholders, according to its website, include TFG Asset Management, which owns 29.9%, the prominent City figure Hugh Osmond, who holds just under 10%, and Melvin Lawson, owner of a 9.7% stake.
The board of WH Ireland is chaired by Simon Moore, who also chairs LV Financial Services, the life insurance mutual.
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