Wealth management company Sanders Morris Harris Group Inc. said Monday that it closed on the sale of its primary capital markets division to Madison Williams Capital LLC.
Sanders Morris Harris said it sold the business in order to concentrate on its wealth management operations. It still holds a 17.5 percent stake in Madison Williams, but said the company can buy its minority interest for $4 million before 2010's end.
Sanders Morris Harris said the sale of the primary capital markets unit has allowed it to move forward on a deal with Fletcher International Ltd. Fletcher will buy $7.5 million of Sanders Morris Harris stock for $7 per share. The deal's closing is expected within the next 10 business days, with Fletcher also receiving a warrant to buy another $7.5 million worth of Sanders Morris Harris stock for $5.75 per share.
Sanders Morris Harris Chairman and CEO George Ball said in a statement that the deals give it enough capital to expand Edelman Financial Services and its high net worth businesses.