Close Brothers Group plc Announces Sale Of Investment In Mako Global Derivatives Executive LLP

Close Brothers Group plc via its wholly-owned subsidiary, Close Derivatives Limited, has entered into an agreement for the phased sale of its entire 49.9% interest in Mako Global Derivatives Executive LLP (Mako), to the Mako executive directors and staff. The Management Team will purchase the shares through Mako Holdings LLP and Mako Holdings LLC, which currently own the remaining 50.1% of Mako. The sale is consistent with Close Brothers' focus on developing its core businesses where it has full control within Banking, Securities and Asset Management. Given the nature of its business, Mako has a more volatile earnings profile which is not consistent with Close Brothers' strategy. The proceeds of the sale will be reinvested in Close Brothers' core businesses. The sale is for an estimated consideration of USD40 million in cash and will be effected via a series of purchases over several years by the Management Team. The sale of the first 16.6% is expected to close in the next few months, and the amount and timing of future purchases will depend on the financial performance of Mako. In addition, whilst it remains a shareholder in Mako, Close Brothers will continue to receive a dividend from Mako equivalent to its share of all profit after tax. Should the aggregate performance of Mako outperform certain predefined levels of profitability, Close Brothers will also be entitled to further deferred contingent consideration of up to USD7.5 million.