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Liontrust to scoop up Majedie for £51.4m discount after share price plunge

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City Editor

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Rachel Kent, senior partner at Hogan Lovells, says action is needed to boost London's capital markets this year.
Rachel Kent, senior partner at Hogan Lovells, says action is needed to boost London's capital markets this year.

London-based asset manager Liontrust will scoop up Majedie Asset Management for £51.4m below the price originally proposed for the deal in December, after the firm’s share price plunged in recent months.

FTSE-250 Liontrust agreed to snap up the firm in a £120m deal in December that included 4.465 million Liontrust shares then worth £97 million. 

But the firm confirmed to Morning Wire today that Majedie would now be sold at £45.6m, £51.4m less than original proposal

A spokesperson for Majedie told the Times last month that bosses still saw a strong rationale for the deal despite the share turbulence. 

“The strategic rationale for the deal with Liontrust is compelling and we continue to be very excited about the potential of the combined entity,” they said.

The firm confirmed that the FCA had given the greenlight to the deal and it was expected to complete on 1st April.