London Daily

Focus on the big picture.

Investment banks Cenkos and finnCap to merge in all-share deal

Investment banks Cenkos and finnCap to merge in all-share deal

A tie-up between two of the City of London's best-known investment banks catering to smaller listed companies is expected to be announced on Thursday morning.
Cenkos Securities and finnCap Group, the London-listed brokers, are in advanced talks to merge in an all-share deal that will create the City's biggest dedicated investment bank serving small-cap growth companies.

Sky News has learnt that Cenkos and finnCap are close to agreeing a tie-up.

An announcement from both companies is likely as soon as Thursday morning.

If confirmed, it will accelerate the consolidation among London's smaller broking firms during a challenging period for capital markets specialists.

Company flotations have been rare in the City in the last year because of economic and market volatility.

The merger of Cenkos and finnCap will come months after Panmure Gordon, the investment bank owned by a vehicle headed by Bob Diamond, the former Barclays chief, abandoned a bid for finnCap.

The two sides were unable to agree on a price.

City sources said on Wednesday that the deal would see finnCap acquiring Cenkos.

The two companies have virtually identical market capitalisations of £21m and £22m respectively.

Other details of the deal, including the leadership of the combined firm and which brand it would use, were unclear.

Despite their lowly valuations, the deal will be closely watched in the City by both peers and the firms' clients.

A slowdown in corporate activity has driven a hunt for enhanced cost savings among brokers, with the prospects for corporate activity this year dampened by the economic backdrop.

FinnCap has endured a difficult period, parting company with Sam Smith, its chief executive and one of relatively few female City bosses, last summer.

Other broking firms are expected to participate in industry consolidation, including WH Ireland, which is under siege from an activist shareholder.

A finnCap spokesman declined to comment, while Cenkos could not be reached.
Newsletter

Related Articles

0:00
0:00
Close
South Korea's Brief Declaration of Martial Law
Unidentified Drones Spotted Over UK Airbases
Israel Offers $5 Million for Each Gaza Hostage Freed
"We Need A British Trump"- Former Prime Minister Elizabeth Truss
Make Orwell fiction again
CIA Official Arrested for Leaking Intelligence on Israel-Iran Conflict
Special counsel Jack Smith asks the court to dismiss his appeal regarding Trump in the Mar-a-Lago classified documents case.
BORIS: UK May Deploy Troops If Trump Cuts Support to Ukraine
Trump Administration Taking Shape: No Invitations Issued to Nikki Haley or Mike Pompeo
Iranian Man Charged in Plot to Assassinate Donald Trump
£3 Billion of British Taxpayer Money Spent by UK Government on Hotel Costs for Migrants
Unlike the shock and profound sadness at 10 Downing Street, British citizens assembled for an impressive rally backing the elected President of the United States, Donald Trump.
Elon Musk Predicts Justin Trudeau's Electoral Defeat
Here's why: Scott Presley convinced swing voters in Pennsylvania with a clear and direct question.
Royal Estates Earning Millions from Public Services and Charities
Siemens Acquires Altair Engineering in $10.6 Billion Deal
The man who got hit by a bus and immediately went back to the pub is strong! Beer is very important.
Donald Trump files $10 billion lawsuit against CBS News, accusing them of 'deceptively doctoring' Kamala Harris' '60 Minutes' interview
Formal Address for Meghan Markle at Invictus Games
Understanding the US Electoral College System
Apple Launches AI Features on Select iPhones
JP Morgan Sued Customers Over Viral Cheque Fraud Scheme
King Charles to Continue Global Tours Despite Cancer Diagnosis
Venice Extends Tourist Entry Fee Program to 2025
Tommy Robinson Charged Under Terrorism Act for Phone Offence
Plans to Increase Employers' National Insurance Announced
Washington Post Editor-at-Large Robert Kagan has RESIGNED after owner Jeff Bezos BARRED the endorsement of Kamala Harris.
Massive Theft of Artisan Cheddar from Neal’s Yard Dairy
US Man Charged with Murder of Co-Worker over Breaks
Carbon Monoxide Incident Claims Lives at UK Care Home
Birmingham Airport Evacuated Due to Suspicious Vehicle
Former US President Barack Obama raps the lyrics to Eminem's ‘Lose Yourself’ after the rapper introduces him at a Kamala Harris rally in Detroit
KYIV URGES NORTH KOREAN TROOPS IN UKRAINE TO SURRENDER
Ofcom Identifies Link Between Social Media Posts and UK Unrest
Russian Boxer Receives Lifetime Ban for Illegal Move in Boxing Debut
Biden Labels Trump a Threat to Democracy
McDonald's Linked to E. coli Outbreak Leading to One Death
Teacher Enoch Burke arrested at Wilson’s Hospital School in Ireland after refusing to endorse and affirm transgender ideology.
FBI Investigates Leak of US Intelligence on Israeli Strike Plans
Israeli Airstrike Targets Hezbollah's Financial Resources
China’s Baidu is revolutionizing transportation with its robotaxi service
Angela Rayner Secures Permanent Seat on UK National Security Council
Russian Ambassador Claims UK's Proxy War in Ukraine
Doctor Advocates for Assisted Dying Law Reform
Ruth Davis Appointed as UK’s First Nature Envoy
Pressure Mounts on Starmer to Discuss Reparations at Commonwealth Summit
James Cleverly’s Costly In-Flight Catering for Government Trips
AI Regulation Takes Center Stage in 2024 US Presidential Campaign
NASA Study Explores Potential Microbial Life Beneath Mars' Ice
Cats: The Liquid-Like Pets
×