Electra Partners, the investment arm of Electra Private Equity plc, is to sell its stake in the fast-growing, Jersey-based trust and corporate services provider Elian to Intertrust Group of the Netherlands for £435m.
The two companies announced the deal, which is subject to regulatory and shareholder approvals, today. They said it is expected to complete later this year.
Elian was created in June 2014 as a result of a management buyout of Ogier Fiduciary Services from Ogier, the Channel Islands law firm, led by chief executive Paul Willing (pictured).
It provides trust, private client services and corporate services, including fund administration and employee benefit packages, to clients around the globe, out of its 15 offices around the world. It employs more than 600 people.
Today’s news of Electra’s sale of its stake in Elian comes at a time of major change for Electra Private Equity Plc, its FTSE-250-listed parent, which has been the target of a sustained campaign aimed at bringing about major changes at the company by one of it’s larger shareholders, Sherborne Investors, led by Edward Bramson. Last month the company, which now has Branson on its board, announced that it was to terminate its contract with Electra Partners, its long-term investment manager, with a year’s notice.
“The board continues to explore a range of options, including retaining the services of Electra Partners as investment manager under a mutually acceptable agreement,” Electra Private Equity Plc said in a statement on 26 March.
It added that under its Management & Investment Guideline Agreement, Electra Partners would continue over the 12-month notice period to provide “the same administrative and investment management services as at present, although there may be some constraints on the rate of new investments”.
‘Around 25% of the company’
In its statement today, Elian said that once the Intertrust acquisition is completed, Elian will comprise about 25% of the newly-combined group, and would “benefit from the long term stability that being part of a listed entity provides, as well as increased geographic scale and diversification in line with its long term strategic goals”.
Based in Amsterdam and listed on the Euronext Amsterdam exchange, Intertrust has 37 offices in 26 jurisdictions across Europe, Asia and the Middle East, and provides what it calls “high-value” trust and corporate services.