Mattioli Woods’ £432m takeover delayed over security bill

The private equity firm’s takeover of SIPP and financial planning firm Mattioli Woods has been delayed by a month due to delays in obtaining government approval due to national security concerns.

Private investment firm Pollen Street Capital has formed an acquisition vehicle, Tiger Bidco, to acquire Mattioli Woods for £432m in cash.

Under the agreement, Tiger Bidco Pollena will pay 804 pence in cash for Mattioli Woods shares.

The acquisition was expected to be completed in August but was postponed until September.

The National Security and Investment (NS&I) Act allows the government to scrutinise and intervene in certain acquisitions by any person, including companies and investors, that could affect the UK’s national security.

This applies to the acquisition of any financial services company that is deemed a “key supplier” to any government entity.

Whether the purchaser is required to notify the government is a matter for legal counsel to decide as part of the acquisition process.

Under the NS&I Act, the acquisition cannot be completed without obtaining the permission of the Secretary of State.

The transaction received regulatory approval from the FCA on 1 July.

Before the transaction can be completed, the court must approve the scheme of arrangement at an approval hearing and provide a copy of the court order to the Registrar of Companies.

On April 25, the program was approved by the required majority vote of the program shareholders and Mattioli Woods shareholders at the general meeting.

In recent years, Mattioli Woods has acquired numerous companies, including several financial planning firms.

Pollen Street Capital has also made a number of acquisitions in the financial services sector and owns the growing wealth management and financial advisory firm Kingswood.