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AFH Financial - US private equity firm bids 463p

March 2021

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • AFHP
  • Price:
  • 463p
Advice-led wealth manager AFH has agreed a £225m takeover from a US private equity firm, Flexpoint Ford (463p cash offer). Acquisitions had only (gently) been back on the agenda with AFH having been in a self-imposed acquisition moratorium since ‘19 whilst it paid down deferred consideration on past deals as it had no intention of accessing the equity market at what was deemed too low a rating - so this represents a decent exit. SCSW made the shares a main buy at 335p in February ‘19; accept the offer. I will drop update coverage. Gain 38%. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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