RAB Capital Acquires Northwest Investment Management

RAB Capital PLC has acquired Northwest Investment Management Limited for a maximum consideration of GBP 20.55 million, payable in cash and shares. George Philips and David Rogers founded Northwest in 1998 and are its only shareholders. From its offices in

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RAB Capital PLC has acquired Northwest Investment Management Limited for a maximum consideration of GBP 20.55 million, payable in cash and shares.

George Philips and David Rogers founded Northwest in 1998 and are its only shareholders. From its offices in London, Northwest manages four absolute return investment strategies: the North Northwest, Northwest MultiHedge Japan, Northwest Asia-X and Northwest Pan Asian Warrant strategies. Across the four strategies, at 1 September 2006 Northwest had approximately USD 500 million in assets under management.

The North Northwest, Northwest MultiHedge Japan and Northwest Asia-X investment strategies have successfully developed Asian-focused market-neutral trading strategies that exploit volatility at attractive levels, as well as trading long/short opportunities with an event bias. The Northwest Pan Asian Warrant strategy pursues a directional trading approach.

Both George Philips and David Rogers have run these funds since inception, and will continue to do so after transferring to RAB. Marketing and support personnel will also move to RAB as part of this transaction and in total eleven staff will transfer.

“RAB’s second strategic acquisition since listing further diversifies the business, particularly in Asian and market neutral products,” says RAB Capital Executive Chairman Michael Alen-Buckley. “George Philips and David Rogers have impressive track records, a depth of trading experience, and products which are scaleable and uncorrelated with our existing range. We are delighted to bring such a strong team to our platform.”

“By becoming part of RAB, the Northwest funds will be able to utilise a stronger institutional framework and leverage off increased capacity and opportunity,” says George Philips, the co-founder of Northwest. “David Rogers and I are very excited at the potential to accelerate our growth in the Asian markets.”

Under the acquisition agreement, RAB has paid a consideration comprising cash of GBP 5.2 million, and the issue of 13.4 million ordinary RAB shares to the vendors. There will be a further cash payment in respect of Northwest’s net assets of up to GBP 1.5 million, subject to due diligence on the closing balance sheet at 1 September 2006. The maximum aggregate consideration is 20.55 million, based on the closing price for RAB Capital ordinary shares of 103.5 pence on 1 September.

RAB Capital had approximately USD 4.2 billion in assets under management at 1 September 2006.

The transaction has been approved by the Financial Services Authority and an application will be made to the London Stock Exchange plc for 13,408,217 million ordinary shares to be admitted to trading on AIM.

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