Negotiations over the sale of the asset management boutique co-founded by Jacob Rees-Mogg and Lord Johnson have halted.
A multimillion-pound bonus to former business secretary Jacob Rees-Mogg is in peril due to stalled negotiations for the sale of the asset management firm he cofounded.
Negotiations between Mr. Rees-company, Mogg’s Somerset Capital Management, and a potential buyer, Emso Asset Management, have stagnated in recent weeks.
Industry experts speculated over the weekend that a deal between Somerset and Emso, which could value the former company at approximately £30 million, is now doubtful.
They cautioned, though, that another bidder may still emerge for the company that Mr. Rees-Mogg co-founded with Dominic Johnson, who was recently knighted and served as investment minister for 26 days under Liz Truss.
Somerset is a specialist investor in companies headquartered in emerging markets, a sector that has been severely impacted by declining trust in the global economy.
In September, it was reported that Mr. Rees-Mogg possessed a “low teens” ownership in Somerset, meaning that a £30 million sale of the company may be worth more than £3 million to him.
Three years ago, the trio reportedly turned down a £90 million acquisition offer from Artemis Investment Management alongside Lord Johnson and investment manager Edward Robertson.
Mr. Rees-Mogg, a staunch Brexit supporter, was business secretary during Ms. Truss’s disastrous administration but resigned last month after Rishi Sunak was appointed as her successor.
Spencer House, a specialized advisor to asset managers, is in charge of Somerset’s sale.
On Saturday, Mr. Rees-Mogg did not respond to a request for comment, and Somerset could not be reached.
