Acta Holding refines its strategy, reorganizes and focuses on more professional clients
(Oslo, 15th August 2012) Acta Holding undertakes extensive strategic initiatives and refocuses its business to secure an improved offering for wealthy individuals, corporations and institutional clients. As a part of this move Acta Holding changes its name to Agasti Holding and relocates the head office to Oslo. As of today Alfred Ydstebø will take the role as CEO of the holding company. Jørgen Pleym Ulvness is hired as deputy CEO of the holding company and CEO of Agasti Capital Markets.
Capital Markets becomes a new business area in Agasti Holding. Amongst others, the commitment to Capital Markets will be backed by an exclusive strategic alliance with Wunderlich Investment Company, Inc. in the US. The strategic alliance will contribute to strengthened capabilities, improved efficiency and an enhanced service offering to wealthy individuals, corporations and institutional clients.
Both the name change and the relocation of the head office are conditional upon the approval by the holding company’s general meeting.
After these initiatives Agasti Holding will have three business areas: Wealth Management, Capital Markets and Investment Management. A common factor in all three business areas is a strong dedication to expertise and quality in internal processes and control systems while also providing valuable services and products for its clients.
The Group will explore a new business opportunity through the strategic alliance with Wunderlich Investment Company, Inc., the holding company for the full-service brokerage firm Wunderlich Securities, Inc. in the US. The brokerage firm has 420 employees spread over 24 offices in 14 states, and offers a comprehensive range of financial services within corporate finance, brokerage of bonds and equities, equity research and wealth management. The company serves both individual investors as well as corporations and institutions and has approximately 26,000 private- and 1,500 institutional clients. The firm has USD 5 billion in assets under administration.
Agasti Capital Markets acquires 50% of Wunderlich Securities AS for NOK 6 million, with an option to purchase the remaining 50% next year. Wunderlich’ Norwegian operations have 7 employees, growth in revenue and increasing earnings. Revenue for the first six months of 2012 was NOK 8.5 million with a pre-tax profit of NOK 0.4 million. The company has a presence within real estate, the energy sector and private equity. Strategically, these are all areas and capabilities which fit very well with the communicated goals of Agasti Capital Markets.
In addition to the share purchase Agasti Capital Markets will invest USD 2.5 million in Wunderlich Investment Company, Inc. in the form of a convertible subordinated debenture as part of an overall move to strengthen the alliance.
The reorganization and transactions are done in accordance with the previously agreed and communicated strategy.
- The hiring of Jørgen is an important step in the Group’s new initiatives. Together with his experience and leadership these initiatives will boost our presence in some of the most profitable sectors of the financial market. This will in turn create a strong foundation for a knowledge-driven, professional and profitable financial group,” says Alfred Ydstebø, CEO of Agasti Holding.
The strategic alliance is expected to strengthen Agasti Holding in the fields of real estate, private equity, energy, and oilfield services. Consequently, this will make a strong contribution to the recruitment of the desired professionals and expertise needed to build the new Agasti group. In addition to the research and capital market functions, synergies in the alliance will also include best practice sharing within wealth management in such areas as compliance, operations, IT, customer service, and product and concept development.
Mr. Ydstebø holds a majority position in Wunderlich Investment Company, Inc. He has not participated in the negotiations of the transaction or in its consideration by the board. The investments in Wunderlich Securities AS and Wunderlich Investment Company, Inc. are expected to be completed within two to three months and are conditioned upon approval from the Financial Supervisory Authority of Norway.
The Wealth Management business area will comprise the companies Navigea Securities AS, Navexa Securities AB and H&P Fondförvaltning AB, with initial assets under management of approximately NOK 26 billion, 100 advisers spread between 20 offices, and a broker desk serving the more affluent clients.
In the future, Navigea Securities and Navexa Securities will focus on advising the 15,000 wealthiest clients. The Group’s remaining approximately 30,000 clients will be maintained through a separate company to ensure that they receive the best and most suitable services. This company will seek a partner which can assist in its development, either alone or together with Navigea Securities, and will subsequently not be a part of the core business of Agasti Holding.
The Capital Markets business area will consist of Agasti Capital Markets AS and 50% of Wunderlich Securities AS, offering capital market services with a particular emphasis on real estate, private equity, energy and oilfield services.
The Investment Management business area will consist of Obligo Investment Management AS, which has assets under management of about NOK 46 billion and focuses on management of real estate, private equity, infrastructure and shipping. A commitment will be made to build a robust and knowledge-driven institutional management platform, where new resources will be recruited in addition to the existing Obligo organization.
Further information from:
CEO Alfred Ydstebø
Mobile phone: (+47) 908 32 828
CCO, Mirja Herrdin
Mobile phone: (+47) 948 82 370
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.