U.K. based banks Cenkos and finnCap to merge in a £21 million deal

Cenkos Securities PLC (LON: CNKS) is in focus this morning after finnCap Group PLC (LON: FCAP) revealed plans of buying the investment bank in a deal that values its equity at £21.1 million ($25.9 million).

Details of the announced merger

The said agreement will replace every 3.19 shares of Cenkos with one share of finnCap.

Upon completion of the transaction, Cenkos shareholders will own 50% of the combined company that will have over £50 million in revenue and £20 million in cash on its balance sheet. In the press release, Cenkos CEO Julian Morse said:

Both bank stocks are roughly flat on Thursday.

Morse and Farrugia to serve as co-CEOs

The press release also confirmed that Julian Morse will lead the combined company – that intends to work on rebranding – with John Farrugia (finnCap CEO) as co-CEOs.

Lisa Gordon will chair the board that will have equal number of directors from finnCap and Cenkos. Commenting on the merger announced today, she said:

Cenkos shareholders will still receive 50 pence a share of cash dividend for 2022 that’s to be paid in the coming June.