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Close Brothers Group PLC - London-based merchant bank - Agrees to sell City broker Winterflood Securities, to London-based Marex Group PLC for £103.9 million in cash. The deal is expected to complete in early 2026 and is subject to regulatory approval. ‘This transaction marks another important step in simplifying the group to focus on our core specialist lending business, following the sale of [Close Brothers Asset Management] in February 2025,’ says Close Brothers Chief Executive Officer Mike Morgan. Close Brothers expects the sale proceeds to benefit its CET1 ratio by around 30 basis points, increasing it to 14.3% from 14.0%. This is based on a tangible net asset value of £88.9 million and assumes an immediate reduction in market and credit risk-weighted assets associated with Winterflood. Close Brothers anticipates further CET1 ratio benefits of up to around 25 basis points from a reduction in operational risk RWAs currently associated with Winterflood ‘in due course’. A goodwill impairment loss of roughly £15 million will be taken in the company’s 2025 accounts. Winterflood suffered a £1.7 million operating loss in financial 2024, which ended in July last year, swung from a £3.5 million profit in financial 2023. It had a £800,000 loss in the first half of financial 2025. It had total assets of £1.31 billion on January 31. Current stock price: 457.40 pence, up 11% in London early Friday 12-month change: down 12% Copyright 2025 Alliance News Ltd. All Rights Reserved.
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