Financial Planning-focused adviser group AFH Financial has temporarily suspended trading in its ordinary shares on the AIM index pending an announcement from the business.

The takeover target has also delayed a general meeting due today to ratify its sale to a private equity firm until further notice.

The moves follow opposition to the sale from its largest shareholder, Slater Investments, which owns approximately 13% of the business.

AFH wants to sell the business to private equity firm Flexpoint Ford’s for £224.5m in cash.

The deal to sell AFH requires a 75% majority of shareholders but it is not yet known what percentage back the takeover deal.

The independent directors of AFH released a statement last week reiterating that they consider the terms of the acquisition to be “fair and reasonable” and believe the acquisition to be “a good deal for all shareholders.”

Shareholders were urged to vote to approve the acquisition at the general meeting today (1 March).

US private equity firm Flexpoint Ford LLC agreed a £224.5m cash takeover of Financial Planning group AFH in January. The deal would see Flexpoint Ford pay 463p in cash for each AFH share.

West Midlands-based AFH, one of the UK's largest Financial Planning firms, has grown rapidly through acquisition of Financial Planning and IFA firms in recent years but last year slowed down its acquisition programme to focus on bedding in new acquisitions.

AFH has acquired 50 Financial Planning and IFA firms in the past six years.

Flexpoint, which has offices in Chicago, New York, has set up a UK takeover company, Cortina Bidco, to see through the deal.

AFH said the suspension of share trading had been at its request and was temporary.

In a statement today the company said: “AFH, the leading Financial Planning-led wealth management firm, announces its intention to adjourn the Court Meeting and General Meeting scheduled to be held today at AFH House, Buntsford Drive, Stoke Heath, Bromsgrove, Worcestershire B60 4JE on 1 March 2021 at 11.00 a.m. and 11.15 a.m., respectively. 

“The company will announce the details related to the postponement of the Court Meeting and General Meeting in due course and until such time, has requested a suspension of trading in its ordinary shares on AIM and of trading in its AFH CULS on the London Stock Exchange's International Securities Market ("ISM") pending a further announcement.”

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