Davy acquires Bloxham Asset Management

Bloxham Asset Management has been sold to Dublin-headquartered Davy Stockbrokers as an investigation into “financial irregularities” at parent company Bloxham continues.

A statement released by Davy said its team, led by Pramit Ghose, will transfer to the company with immediate effect. Assets run by the team currently exceed €700m in value.

The transaction, which has been agreed in consultation with the Irish Central Bank, follows the discovery of issues in the internal finances of Ireland’s oldest stockbroker Bloxham last week. Issues relate to the reporting and accounting of the firm’s income and no client funds are involved or at risk, according to a statement from the group. Assets managed by Bloxham Asset Management continue to be held on the balance sheets of either Irish Life or New Ireland.

Tony Garry, chief executive of Davy, said: “The transition to Davy is a very positive development for Bloxham’s asset management clients who will continue to be serviced by the same award winning team, but as part of a much larger and well capitalised business.”

Bloxham, a 150-year-old stockbroking firm, was ordered to cease trading by the Central Bank on Friday (25 May 2012) and is suspended from the Dublin trading floor for alleged accounting irregularities.

The Central Bank said “At 5pm last Friday, the Central Bank imposed directions on Bloxham to cease all regulated activities, with immediate effect.

“Early this morning, Bloxham agreed to transfer all private client and fund management business to Davy. The Central Bank will continue its own investigation into the financial irregularities at Bloxham.”

This transaction was jointly led by Bryan Bourke and Shane O’Donnell at William Fry Solicitors. Both are partners in the Corporate Department. Bourke commented, “This transaction involved the acquisition of two business divisions. An agreement to acquire the private client division was signed in March with a completion scheduled to take place in June. The addition of the fund management division arose only after the Central Bank became involved - so the deal was concluded in a very tight time-frame.”