The Ince Group’s takeover of financial adviser Arden Partners has hit a stumbling block after the London Stock Exchange refused approval of the deal.
The LSE has in particular taken issue with Arden’s status as a nominated adviser (nomad).
It comes six months after Ince announced its proposed £10 million all share takeover of Arden, its own corporate adviser at the time.
But in a statement to the London Stock Exchange, Ince has acknowledged that “there was a significant risk to Arden’s continued nominated adviser status” should a change of control occur.
It added: “The Board of Ince has entered into discussions with the board of Arden regarding the implications of London Stock Exchange’s decision on the acquisition and will provide a further update to shareholders as soon as practicable.”
To become a nomad on the Alternative Investment Market, a firm requires approval from the London Stock Exchange. Generally, nomads help bring companies to the market and assist with regulatory issues, among other market matters.
Since news of the Stock Exchange’s decision broke, Arden’s share price was at 13p on Thursday close of play, having closed at 18p the day before – a decrease of 28%.
Meanwhile, Ince’s share price was down slightly to 27.6p from the 28p recorded at the close of the previous day.
Since October, Ince’s share price has fallen considerably from 50p per share.
A person with knowledge of the firm said that the decision is unlikely to derail the acquisition altogether.