BNP Paribas AM nets 15x investment from Impax share sale

French fund manager sells 40% of its Impax stake on the back of stock price jump this year

BNP Paribas Asset Management has sold a 10.5% stake in Impax Asset Management, the London-based environmental funds specialist, locking in a multiple of circa 15x on the price they paid for shares back in 2007. 

BNP has sold 13,661,888 ordinary shares in Impax at a price of 510 pence per share, representing approximately 10.5% of Impax’ issued share capital.

The French fund manager will retain 14% of Impax shares.

BNP bought the Impax shares back in December 2007, when the share price was between 30-40p per share. At the time, Impax was running just over £1bn in assets. It now runs £20.2bn in assets (end September, 2020). 

Impax, which was founded in 1998, is listed on the FTSE AIM market. 

Its stock price dropped from 568p to 539p on news of the BNP share sale, although the share price is up over 40% in the last year.

Impax said BNP AM continued to be supportive of the firm and had recently updated sales, marketing and distribution agreements with it.

Impax has exclusive management contracts for five of BNP AM's listed equity investment funds environmental solutions, and it said these contracts had been extended for a minimum of four years.

BNP Paribas AM remains Impax’s biggest shareholder at 14%, followed by Blackrock with 7.5% and Ian Simm, Founder and CEO with 7.3%. Other large institutional shareholders include Rathbone Investment Managers (4.6%), Hargreaves Lansdown Asset Management (4.5%) and Janus Henderson Investors (4.1%). 

BNP Paribas’ banking arm and Peel Hunt were joint bookrunners on the share sale.