Thursday, July 17 11:11:34
Somers, parent company of Bermuda Commercial Bank has completed a 3.25 million-euro investment in Irish brokers Merrion Capital.
Somers, a Bermuda Stock Exchange listed company, said today that it had received approval from the Central Bank of Ireland for the transaction.
Merrion Capital is being bought by management in a deal backed by Brehon Capital Partners and Somers. The Central Bank gave its approval for the new investors earlier this month.
Executives at Merrion will retain a majority interest in the firm, while Brehon Capital Partners and Somers will acquire sizeable minority holdings. The two investment vehicles will also take an active role in assisting Merrion management to expand the business.
Somers has agreed to invest E3.25 million in Merrion by way of an equity investment of E750,000, representing 6.6pc of Merrion's issued share capital, and a three-year convertible loan note of E2.5 million.
Merrion, established in 1999, is an independent financial services firm providing stockbroking, corporate finance advisory and funds management services to a mainly Irish client base.
Somers chairman Warren McLeland said: "We are pleased to announce the completion of our investment in Merrion and believe it has exciting growth potential which will complement our existing investments. We look forward to working with management and Brehon."