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Close Brothers, the biggest remaining London-listed investment bank, today sold its corporate finance division to Japan's Daiwa Securities for £75 million.
The business, headed by chief executive Stephen Aulsebrook, employs 30 senior dealmakers in its London office, and has a network of offices in 26 countries.
It has recently been involved in some high-profile restructuring deals including advising bondholders at housebuilder Taylor Wimpey and doorstep lender Cattles. In the past, Close was very active in the private-equity market and in leisure, media and support-services deals.
In the six months to end-January the business lost £2.6 million. In the year to the previous July it made profits of £4.7 million and had net assets of £58.4 million. The sale will raise the bank's core tier one capital ratio - a key measure of balance sheet strength - from 13.3% to 14.2%.
Close chief executive Preben Prebensen, who only took charge last month, said he wanted to concentrate on the bank's three larger divisions which are banking, assets management and securities where "we are well-positioned and have strong growth prospects".
