US rival buys one of UK’s oldest stockbrokers: £278m takeover of Charles Stanley means mammoth payday for the Howard family
One of the UK’s oldest stockbrokers is set to fall into the hands of a US rival.
The sale of Charles Stanley, which was founded in 1792, means a mammoth pay day for the Howard family who own 38.2 per cent of the company.
Chairman Sir David Howard and his wife Lady Valerie will walk away with £64m while his brother John Howard will pocket £20m.
Sinking feeling: The sale of Charles Stanley, which was founded in 1792, means a mammoth pay day for the Howard family who own 38.2 per cent of the company
The firm, which is even older than blue-chip brokers Rothschild & Co and Schroders, has agreed to a £278m takeover by Florida-based Raymond James.
The 515p-a-share offer is a 43.5 per cent premium to the share price on Wednesday.
Shares in Charles Stanley, which listed on the London Stock Exchange in 1852, soared 42.8 per cent.
Sir David said: ‘When I started in 1967, Charles Stanley was a tiny partnership, and it had little or no value in its own right.
‘It split off from a bank in Yorkshire that began in 1792, and its history as a member firm of the London Stock Exchange dates back to the 1850s. But until the 1960s it remained very small.
‘The plan is for us to remain a member firm and continue to grow, but now as part of the Raymond James group.’
Both boards have agreed to the deal and a third of investors back the takeover. The firm will continue to operate under the Charles Stanley name.
David Howard and chief executive Paul Abberley will keep their jobs.