First Capital to add Sovereign Capital to group
Property funds management group First Capital has signalled its intentions to buy Sovereign Capital, a Gold Coast-based construction lending business, for a purchase price of $3 million.
The acquisition will boost First Capital’s funds under management (FUM) by an additional $59 million and take the group’s total FUM to $89 million.
Once the purchase is complete, First Capital will take control of all of the funds that have Sovereign as their responsible entity, a move that will allow First Capital the most efficient method to offer its clients a new range of financial products.
Currently, both parties have only signed a heads of agreement for the acquisition, which is subject to board approval
It is anticipated the transaction will be completed 30 days after the sale agreement has been properly authorised.
It is proposed that the $3 million consideration will consist of a combination of bank finance and the issue of convertible notes and preference shares.
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