December 9, 2023

MJ Hudson has agreed to sell its two remaining businesses to the Apex Group subsidiary as the group prepares to delist.

The troubled investment advisory firm told investors on Tuesday that the joint sale of its data and analytics division and business outsourcing segment to Apex Consolidation Entity would raise up to £40 million.

The bulk of the proceeds from the deals will go towards repaying the £33.7m owed to its senior creditor, Santander UK, with MJ Hudson warning that it is “highly unlikely” that shareholders will receive a payout once all costs have been settled.

Deal: Troubled investment advisory firm MJ Hudson said the joint sale of its data and analytics division and business outsourcing segment would raise up to £40 million.

At the completion of the latest sale with Apex, which is subject to investor approval, MJ Hudson stated that it would be a cash shell without a trading business.

MJ Hudson is set to notify the UK Bar Regulatory Authority of the proposed closure of its legal business, but the firm has yet to make long-term decisions about the company’s future.

Sky News reported last month that Apex is in talks for a complete takeover of MJ Hudson, which was in crisis due to the audit of its FY 2022 annual accounts.

Last October, the company was forced to delay the release of financial results due to audit adjustments related to a £1.3 million public sector contract.

Two months later, he removed CFO Peter Connell, who had been with the firm since its inception, and suspended trading in its shares when further discrepancies were discovered.

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Big Four accounting firm EY has since resigned as auditor for Hudson, citing a “loss of confidence” in the management of the Jersey-listed group.

The advisory firm, founded by former SJ Brewin partner Matthew Hudson in 2010, provides services in the asset management sector such as outsourcing and environmental, social and governance ratings advice.

Notable clients included financial giants BNY Mellon, Investec and St James’s Place, as well as London-listed corporate groups such as Marks & Spencer, Unilever and recruiter Hays.

In March, Hudson agreed to transfer its UK fund management arm to acquisition specialist Khepri for £1m up front, plus an additional £45,000 over the next three months and £30,000 each month thereafter until the deal is completed. .

Apex, headquartered in Bermuda, is partially owned by Abu Dhabi sovereign wealth fund Mubadala and private equity giants Carlyle and Genstar Capital.