Ravenscroft announces multi million pound deal

Friday 20 July 2018

Ravenscroft has agreed terms to acquire a 25% shareholding of MXC Capital (UK) Limited (“MXCUK”).

The deal, which is worth £2.25 million, has been agreed between Ravenscroft Holdings Limited, MXCUK and MXC Guernsey Limited, which is a subsidiary of AIM quoted MXC Capital Limited (“MXC”). MXCUK is also a subsidiary of MXC and is the holding company of the group’s transactional businesses, being MXC Advisory Limited, the group’s advisory business, and MXC Capital Markets LLP, the group’s corporate finance practice.

The deal, which is subject to consent from the Financial Conduct Authority, will strengthen the relationship between the two companies. Earlier this year, MXC was appointed as a consultant to Ravenscroft in relation to its role as investment manager to the Guernsey Investment Fund’s Technology & Innovation Cell (the “GIF”), which has already made a number of investments in projects and businesses which have a Bailiwick of Guernsey focus, or which may benefit directly or indirectly the development of the Bailiwick.

Jon Ravenscroft, chief executive officer of Ravenscroft, said the deal benefits both companies.

"This is a long-term investment which aligns Ravenscroft’s interests more closely with those of MXC with whom we have already established a successful working relationship. We expect opportunities to refer work to each other and believe there is potential for further synergy in the future, which will further benefit our shareholders and our loyal and hard-working teams," he said.

Peter Rigg, chairman of MXC, said the board believes it will grow and drive further value in the group’s transactional business, as well as provide further opportunities within its investment business.

"We are delighted that Ravenscroft has decided to take a significant stake in our transactional businesses, demonstrating their belief and confidence in the MXC model.

"It is testament to the excellent relationship we have built with Ravenscroft as a result of working together on the GIF and we look forward to building on that relationship to create further value for both MXC and Ravenscroft’s shareholders."

On completion, Ravenscroft will pay £1.5 million with the remaining £0.75 million due in January 2019.