Kingswood’s private equity (PE) backer has taken over majority equity control of the AIM-listed national advice group and wealth manager following a conversion of preference shares.
HSQ Investment, a subsidiary of PE house Pollen Street Capital, bought 77 million preference shares in Kingswood in 2019 at £1 per share, with a 5% annual dividend attached to them that could be rolled up annually and paid in full on conversion.
Today, Kingswood announced that, following regulatory approval, these preference shares – which did not carry voting rights of normal equity – have now been converted into new ordinary shares worth 16.5p per share. They are to be listed on the AIM market on 4 June.