19 November, 2009
FACTBOX-Key facts, history, rankings on Cazenove
Nov 19 (Reuters) - JPMorgan Chase & Co (JPM.N) is buying the half of Cazenove it does not already own in a deal valuing the venerable UK stockbroker at 2 billion pounds ($3.4 billion). [ID:nLJ417095]
Key facts about Cazenove:
HISTORY:
Cazenove dates back to the early Huguenot financiers who left France due to religious persecution in the late 17th century. Members of the Cazenove family arrived in London and in 1819 Philip Cazenove joined the financial business of his brother-in-law John Menet.
They prospered from raising money for railway companies, sewage firms and others and by the mid-1930s established as one of the City of London's pre-eminent stockbroking partnerships.
The company incorporated in April 2001 and considered a flotation. In November 2004 it struck a UK investment banking joint venture with JPMorgan.
CLIENTS, DEALS:
The joint venture maintained Cazenove's position as adviser to more top British firms than any rival. It is broker to 36 FTSE 100 .FTSE companies and 94 FTSE 250 .FTMC clients.
Advised on most big UK rights issues this year, including for HSBC (HSBA.L), Rio Tinto (RIO.L) and Lloyds (LLOY.L). Other clients include Barclays (BARC.L) and Diageo (DGE.L).
Media reports say personal clients include the Queen of England and David Beckham.
RANKINGS:
JPMorgan Cazenove ranks no.1 on UK equity capital markets activity this year, advising on 51 issues worth almost $22.9 billion, according to Thomson Reuters data, and on 27.2 percent of deals.
JPMorgan ranks fifth for UK debt capital markets activity, advising on deals worth $15.7 billion, 6 percent market share.
JPMorgan Cazenove ranks 11th for UK M&A advisory on deals worth $19.8 billion, 7.4 percent market share.
PROFITS, VALUATION:
JPMorgan Cazenove 2008 pretax profit 134.5 million pounds. Cazenove Group's post-tax profit was 48.5 million pounds, implying a valuation on Thursday's deal of 21 times earnings.
Cazenove Group's post-tax profits in nine months to end-September was 65.4 million pounds, indicating full-year profits of over 80 million pounds and a deal valuation of under 13 times current year earnings.
MANAGEMENT AND STAR BANKERS:
JPMorgan Cazenove Chairman David Mayhew, 69, joined Cazenove in 1969. Chief Executive Naguib Kheraj took the helm in October 2008 joining from UK bank Barclays.
Top dealmakers include: Ian Hannam, chairman of capital markets; Alan Carruthers, head of equities; and Charles Harman, head of UK investment banking.
Kheraj will have a short-term integration role. Mayhew, Hannam, Carruthers and Harman will all join JPMorgan.
SHARE OWNERSHIP:
Mayhew is in line for a 19 million pound payday, based on his ownership of 3.6 million ordinary shares at the end of 2008.
Dozens of former staff and current employees stand to make millions of pounds apiece.
Cazenove has about 1,500 shareholders and about 36 percent of shares are owned by current staff. Some 54 percent is owned by former employees, 8 percent is owned by institutions and 1 percent is owned by JPMorgan. (Sources: company, Thomson Reuters data, reports) (Compiled by Steve Slater; editing by Elaine Hardcastle)
Source: http://www.reuters.com
FACTBOX-Key facts, history, rankings on Cazenove Added: (19.11.2009)
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