Walker Crips has agreed to a £5.96m acquisition offer from investment and wealth management firm, PhillipCapital.

Under the terms, shareholders in the financial services firm will receive 14p in cash per share, representing an 86.67% premium of its closing share price on 21 November.

The deal comes after Phillip Brokerage, a significant shareholder in Walker Crips, was required to provide urgent financial support to the firm earlier this year.

In recent years, Walker Crips has looked to address the costs of its historic legacy issues and the changes in regulation relating to interest paid on client cash accounts having negative effects on its outlook.

Furthermore, the financial firm’s independent directors have noted that its shares have not traded at the level of the acquisition price since its results announcement for the year to 31 March.

As a result, Walker Crips’ directors intend to recommend unanimously that its shareholders vote in favour of the deal, stating that the terms of the deal are “fair and reasonable.

Following the announcement, shares in Walker Crips jumped by over 73%.

Non-executive director at Walker Crips, Mark Nelligan, said: "Walker Crips has faced a number of challenges in recent years, and continues to progress with addressing its legacy issues in an evolving compliance and regulatory environment. The offer from PhillipCapital, represents an attractive premium to Walker Crips' current share price and offers shareholders the certainty of cash in the near term, whilst also mitigating the risk associated with the repayment of the working capital facility in January 2026.

“Under PhillipCapital's private ownership, without the costs and regulation of a listed company, Walker Crips will be able to pursue its strategy, while benefiting from the capital and backing of the PhillipCapital Group. Accordingly, the Independent Walker Crips directors intend to recommend unanimously that Walker Crips shareholders vote in favour of the acquisition."

Director at PhillipCapital, Linus Lim, added: "PhillipCapital is delighted to continue its longstanding relationship with Walker Crips. The management team of Walker Crips have built a differentiated platform underpinned by its well respected brand. With the support of the wider PhillipCapital Group, we believe that Walker Crips will be able to fully capitalise on the undoubted market opportunity."

---