Former chief executive of Barclays (LON:BARC), Bob Diamond, has agreed to buy Panmure Gordon (LON:PMR) – one of London’s oldest stockbroking firms.
Bob Diamond will join forces with Qatari investment bank QInvest (CVE:QI) in order to purchase one of Britain’s oldest stockbrokers.
“We have been major investors in Panmure Gordon for more than seven years and are excited about this opportunity to work with Atlas to develop the business, alongside its management team and employees, and to assist it in fulfilling its potential.” said chief executive of QInvest, Tamim Al-Kawari.
Diamond’s career came to a halt back in 2012 when he was forced to step down from Barclays after the Labor rigging scandal and George Osborne described the resignation as “the right decision for Barclays – and for the country”.
Panmure Gordon dates back to 1876 and has an impressive alumni, including three generations of David Cameron’s family. Directors from the stockbrokers recommended the offer of £1 per share, valuing the company at £15.5m.
Atlas will have the majority stake and QInvest will maintain its existing 43 percent stake.
“We believe there is significant opportunity for Atlas, in partnership with QInvest, to apply our operational skills and financial services expertise to enhance Panmure Gordon’s strong reputation and build a larger, successful boutique investment bank.” said Matthew Hansen from Atlas.
“This long term stabilisation and development can only realistically be achieved as a private company, out of the glare of the public market and the effects of share price movement.” he continued.
Andrew Adcock chairman of the independent directors has said that offer is “fair and reasonable”.
Diamond’s interest in Panmure is a result of months of talks about a deal, although he is not expected to be directly involved in the management.
The stockbroker has struggled recently amid growing competition among broking firms to work on new share issues, company listings and takeovers.