May 6, 2009 / 8:06 AM / 10 years ago

UPDATE 1-SovGEM in reverse buyout with Hanson Westhouse

* SovGEM’s intends reverse buyout for about 3 mln stg

* New group named Hanson Westhouse Holdings Plc

* Garth Milne to be Chairman, William Staple CEO

(Adds details)

May 6 (Reuters) - SovGEM Ltd SOV.L, the Jersey-based emerging market equity finance house, said it plans to buy Hanson Westhouse Ltd, an investment bank specialising in small, mid-cap companies and emerging markets, for about 3 million pounds ($4.51 million) in a reverse takeover.

SovGEM, which expects the deal to expand on its corporate and advisory business, said the purchase price excludes 258,000 pounds in preliminary proceeds to Hanson Westhouse.

SovGEM, which had temporarily suspended trading on AIM earlier today pending the merger announcement, said it plans to issue shares at 11.9 pence per share for about 2.7 million pounds to Hanson Westhouse.

The combined entitiy will be named Hanson Westhouse Holdings Plc after the reverse buyout and will be based in London.

The companies additionally plan to raise a further 850,000 pounds through issuance of new shares to fund costs related to the transaction and for added working capital for the combined group.

Following the merger, SovGEM Chairman Garth Milne will be the Chairman and Hanson Westhouse’s Chief Executive William Staple will be the CEO of the combined entity.

SovGEM’s co-founders Douglas Kearney and CEO Hugh de Lusignan, will be retained by the group, the companies said.

SovGEM closed at 8 pence Tuesday on the London Stock Exchange.

$1=.6651 Pound Reporting by Shivani Singh in Bangalore; Editing by Kavita Chandran

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