Acquisition of Neba Businesses

Team PLC

12 December 2023

 

TEAM PLC

("TEAM", the "Company" or the "Group")

 Acquisition of Neba Businesses

TEAM plc (AIM: TEAM), the wealth, asset management and complementary financial services group, is pleased to announce that it has acquired the entire issued share capital of: -

-      Neba Financial Solutions Limited ("Neba Wealth"), a Labuan, Malaysia regulated network of financial advisers operating in Asian, South and Central American, African and Middle Eastern markets; and

-      Neba Financial Solutions Private Limited ("Neba Singapore") which promotes structured funds to IFAs primarily in Dubai and Singapore

(together "Neba") from the 100% shareholder, John Beverley, for a total initial  consideration of £1.181 million to be satisfied by the issue by the Company of a loan note which is convertible into new TEAM shares (the "Acquisition").

Highlights

·   Newly created TEAM East reporting unit will comprise Neba and all the operations of Globaleye Group ("Globaleye") which was acquired by the Company in June 2023, creating a significant base to build a financial services business in developing markets

·    An intention to recruit high calibre financial advisers to TEAM East, driving growth in Assets Under Advice and inflows into TEAM Asset Management funds and models ("TEAM AM").

Consideration

The initial consideration will be satisfied by the issue by the Company of a nil coupon convertible loan note with a value of £1.1 81million, which is convertible into 3,281,250 new ordinary shares of nil par value in TEAM ("Ordinary Shares") at the point TEAM has refreshed its authorities to issue the required shares, which is expected to be at its forthcoming Annual General Meeting to be held in early 2024. Subsequent deferred payments to the vendor of £1.0 million for every £100 million which is invested into TEAM AM funds and models arising from clients of TEAM East will be settled by the issue of new TEAM shares at the then prevailing market price, capped at a maximum of 25 million new Ordinary Shares. All new shares to be issued to the vendor whether on conversion of the loan note or in satisfaction of any deferred payments will have to be held for two years from the date of issue before they may be sold.

Neba Wealth - Overview

·  Operating from Labuan, Malaysia, Neba Wealth provides a regulatory and operational structure for self-employed financial advisers

·   Neba Wealth currently provides a regulatory umbrella for 25 advisers who are primarily based in Vietnam, China, the Philippines, Kenya and Thailand, where they promote investment and insurance products to expatriates

·     In the year to 31 December 2022, Neba Wealth generated audited turnover of £0.9 million and a loss of £4k.

Neba Singapore - Overview

·     Neba Singapore promotes funds to IFAs in Asia, South and Central America, Africa and the Middle East

·     In the year to 31 December 2022, Neba Singapore generated unaudited turnover of £0.1 million and a profit of £5k.

Acquisition Rationale

·   The acquisition of Neba is in line with TEAM's strategy to bolster the distribution of TEAM AM funds and services to international and expatriate clients in high growth markets

·   Combining Neba with Globaleye is a logical step for TEAM to create Team East under John Beverley's leadership. Globaleye is headquartered in Dubai, has a Labuan business together with offices in Abu Dhabi, Singapore and Durban (South Africa)

·     Team East's focus will be to recruit high performing advisers, and deepen its presence in developing markets. TEAM AM will provide TEAM East's clients with its investment services which will grow the Group's revenues and profits.

Mark Club, Chairman of TEAM, commented: "John Beverley is a successful entrepreneur who has a disciplined approach with deep knowledge and extensive experience of overseas financial services markets. Under John, TEAM East will build a high-quality advisory service. I am confident that our reputation will continue to grow which, in turn, will support John as he spearheads our next phase through the recruitment of high calibre individuals to expand our client base. John will become a meaningful shareholder following conversion of his loan note aligning him with all shareholders. This is undoubtedly an exciting next step for TEAM."

John Beverley, Founder and Managing Director of Neba, said: "I am delighted to be joining and directing TEAM East. Over the past eight years, I have built Neba Wealth and Neba Singapore into two attractive and bespoke businesses in the international financial advisory market. Moving these two businesses into TEAM East was not only the natural next step, but a unique opportunity to partner with a reputable listed company as it embarks on the next stage of its global strategy."

Enquiries to

TEAM plc Mark Clubb, Executive Chair Matthew Moore, CFO and COO	[phone]
Shore Capital (Nominated Adviser and Broker to TEAM) Tom Griffiths, Iain Sexton, Guy Wiehahn	[phone]
Novella Communications (Financial Public Relations) Tim Robertson, Claire de Groot, Safia Colebrook	[phone]
Hannam & Partners (Financial Adviser to TEAM) Giles Fitzpatrick, Richard Clarke	[phone]

www.teamplc.co.uk

 

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