Goodbody in fresh sale talks as Swedish bank circles

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Goodbody Stockbrokers and its majority owner Fexco are in fresh talks with a number of interested parties that could see all or part of the business being taken over, according to sources.

The discussions are said to be at an early stage. The development comes months after they called off a sale of the 142-year-old firm to a consortium of Chinese investors in what was being lined up as a €150 million transaction.

Industry sources say that Swedish banking group Handelsbanken may be among the parties, as it is known to have been actively looking at acquisitions in the the wealth management market in Ireland. Goodbody Wealth Management has over €7 billion of assets under management or advice.

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Spokesmen for Goodbody Stockbrokers and Handelsbanken declined to comment.

Kerry-based financial services company Fexco, founded and led by executive chairman Brian McCarthy, bought 75 per cent of Goodbody eight years ago from AIB in a deal worth €24 million.

Goodbody management and staff subsequently doubled their combined holding to 49 per cent under an incentive scheme tied to the original deal.

A Chinese consortium, led by state-backed Zhong Ze Culture Investment Holdings, agreed last summer to buy the entire business, which employs more than 300 people.

Management

However, Goodbody management, led by chief executive Roy Barrett, and Fexco decided in January not to proceed with the deal. The Irish side had soured on a transaction as the make-up of the Chinese consortium changed in the months following the agreement.

The wealth management sector in Dublin is undergoing a wave of consolidation. UK investment firm Brewin Dolphin moved last week to double down in the Republic by buying the local wealth business of Investec in a deal worth €44 million.

In February, FTSE 100-listed wealth management group St James's Place struck a deal to buy Dublin-based pensions and investment firm Harvest Financial Services for almost €12 million.