The oldest stockbroker in London has become the latest British institution to be acquired by an Indian company, snapped up in a 55 million pounds deal by a Delhi-based brokerage firm.
Hichens Harrison, which has been trading for 205 years, was taken over on Friday by Religare Enterprises, which is controlled by Malvinder and Shivinder Mohan Singh, owners of Ranbaxy.
The acquisition of Hichens Harrison is expected to help Religare boost its investment banking operations and extend its reach in emerging markets.
Hichens Harrison is said to be the only London stockbroking firm to have survived more than 200 years almost in its original form. The deal was struck at a multiple of 13.1 times Hichens' 2007 basic earnings per share.
Adam Wilson, the chief executive of Hichens, will make 4.3 million pounds from the deal, with fellow director Brian Rowbotham receiving just under two million pounds. The pair own about 13% of the firm between them and both will remain with the company.
Shachindra Nath, director of Religare Capital Markets, a Religare subsidiary formed to acquire Hichens, said: "Having looked at other brokers in UK, we came to the conclusion that Hichens, with its strong presence in emerging markets, would be the best fit for us."
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