TruFin conditionally accepts offer for its Vertus shares

(Sharecast News) - Financial holding company TruFin has conditionally accepted a non-binding, indicative cash offer for its shares in Vertus Capital, it announced on Monday. The AIM-traded firm currently holds a 53.8% equity stake in Vertus.

It said the proposal, tendered by an undisclosed private equity entity, placed the valuation of Vertus Capital at a potential maximum of £5.9m.

Given TruFin's majority stake in Vertus, the company said it was poised to obtain cash proceeds amounting to an estimated £3.2m.

"The company announces that Watrium - a 22.8% shareholder in the company - is a minority LP investor in the private equity fund which proposes to acquire Vertus, and that Watrium intends to co-invest directly in Vertus as part of the transaction," the board said in its statement.

"As such, it is expected that the offer, upon execution, will constitute a related party transaction for the purpose of AIM Rule 13 and accordingly, the company's independent directors would need to consider that the terms of the offer are fair and reasonable insofar as the company's shareholders are concerned.

"Anders Wilhelmsen, a non-executive director of TruFin and shareholder representative of Watrium, was not involved in the TruFin's board's consideration of the offer and will not be involved in any fair and reasonable considerations."

At 0812 BST, shares in TruFin were down 2.22% at 66p.

Reporting by Josh White for Sharecast.com.