Slater Investments owns almost 13% of AFH, according to newspaper The Times.

If other investors back the call from Slater, the deal could be blocked as the takeover is structured as a scheme of arrangement. Schemes of arrangement require 75% backing from shareholders.

Following the opposition from Slater, the independent directors of AFH released a statement today reiterating that they consider the terms of the acquisition to be “fair and reasonable” and believe the acquisition to be “a good deal for all shareholders.”

AFH's independent directors have urged shareholders to vote to approve the acquisition at the general meeting on 1 March.

“The Independent Directors believe that the acquisition reflects an attractive valuation which will provide AFH Shareholders with the opportunity to obtain liquidity for their investment and to crystallise the value of their holdings now against an uncertain market backdrop,” the statement from said.

US private equity firm Flexpoint Ford LLC agreed a £224.5m cash takeover of Financial Planning group AFH in January. The deal will see Flexpoint Ford pay 463p in cash for each AFH share.

West Midlands-based AFH, one of the UK's largest Financial Planning firms, has grown rapidly through acquisition of Financial Planning and IFA firms in recent years but last year slowed down its acquisition programme to focus on bedding in new acquisitions.

AFH has acquired 50 Financial Planning and IFA firms in the past six years.

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

The acquisition, subject to shareholder and regulatory approval, values AFH's ordinary share capital at approximately £224.5m.