Investec (Ireland) has sold its Republic of Ireland Wealth management business to UK firm Brewin Dolphin for €44m.

The company said the decision to sell the business came about after changes in its Irish business model brought about by Brexit planning and as part of consolidation taking place in wealth management. 

The sale is still subject to regulatory approval.

UK company Brewin Dolphin said the deal would make it one of the country's top-three wealth managers.

The wealth management business was acquired by Investec as part of its acquisition of NCB in 2012 and has grown significantly since then.

Investec said its other Irish businesses are unaffected by the sale. 

Investec said that to cater for the loss of banking passporting rights after Brexit, it has established its other financial activities in Ireland in a MIFID subsidiary, Investec Europe, which is authorised by the Central Bank.

Brewin said it would look to raise £60m in a share placing to help fund the deal and bolster its capital position after a string of other acquisitions over the last 12 months. 

The shares will be placed with institutional investors at a price of 305 pence per share, it said, adding the placing was not conditional on the Investec deal completing as planned in the second half of 2019. 

Brewin also said today its first-half managed funds had dipped to £42.4 billion from £42.8 billion at the end of 2018, as market losses offset net inflows of new cash. 

Pretax profit during the six months to end-March fell 12.9% to £29.7m, while Brewin Dolphin's interim dividend was flat at 4.4 pence per share.