Bob Diamond has joined forces with the Qatari royal family to buy Panmure Gordon, the loss-making stockbroker and investment bank.
The former Barclays chief executive has made the offer through his Atlas Merchant Capital vehicle and QInvest, the Qataris’ investment arm.
QInvest already owns 43% of Panmure, which dates back some 140 years.
The offer, which values Panmure at £15.5m, has been recommended by the board.
Andrew Adcock, chairman, said the independent directors believed the offer was “fair and reasonable”.
Matthew Hansen, head of UK and Europe for Atlas, said there was a “significant opportunity to enhance Panmure Gordon’s strong reputation and build a larger, successful boutique investment bank”.
That could only be done as a private company, “out of the glare of the public market and the effects of share price movement”.
The deal will be regarded as a return to the City by Mr Diamond, who resigned from Barclays in the wake of the Libor rigging scandal in 2012.
QInvest bought its stake in Panmure in 2009. Tamim Al-Kawari, its chief executive, said it was “excited about this opportunity to work with Atlas to develop the business, alongside its management team and employees, and to assist it in fulfilling its potential”.