The £232m takeover of Financial Planning-led wealth manager AFH Financial Group has been given the green light by the FCA.

The deal, already approved by AFH shareholders, has one further hurdle to pass; sanction by the High Court.

AFH says it expects this soon with the deal due to be finalised by the end of June.

West Midlands-based AFH will be bought by US private equity firm Flexpoint Ford which is using a takeover vehicle, Cortina Bidco Limited, to execute the deal.

The deal was almost derailed when major AFH shareholder Slater Investments objected to the price being paid. Slater owns approximately 13% of AFH.

Following the opposition, Flexpoint increased its bid for AFH to 480p in cash for each AFH share. Under the previously agreed deal, shareholders would have been entitled to 463p per share.

US private equity firm Flexpoint agreed a £224.5m cash takeover of AFH in January. Under the new terms the takeover values AFH at around £231.6m.

The independent directors of AFH have unanimously supported the takeover and urged shareholders to vote in favour.

They believe the deal will help highly acquisitive AFH to grow faster. AFH has acquired 50 Financial Planning and IFA firms in the past six years.

AFH is headed by Chartered Financial Planner Alan Hudson.

Flexpoint said recently that it expects the acquisition scheme to become effective by 30 June if it is accepted.

Flexpoint, which has offices in Chicago, New York, set up UK takeover company Cortina Bidco to see through the deal.

Flexpoint is the latest private equity firm to show strong interest in acquiring UK Financial Planning and wealth management firms.