Aberdeen close on Edinburgh deal
Aberdeen Asset Management has made a formal offer to shareholders of Edinburgh Fund Managers as it attempts to acquire the UK-based investment manager.
The deal if successful will see Aberdeen strengthen its institutional equity and fixed income business, as it plans to procure the sale of Edinburgh’s retail funds to New Star Investment Management for approximately $80 million once the deal is complete.
The subsequent New Star deal is in line with the agreement struck between it and Aberdeen back in January for the former to manage Aberdeen’s retail funds.
“What we’ll be acquiring is the institutional business, which is a mixture of listed investment companies and individual mandates,” says Aberdeen Asset Management Australia director Charles Macrae.
The offer for Edinburgh stock, which has been unanimously recommended by the group’s directors, involves an offer of 2.05 new Aberdeen shares for each Edinburgh share.
As at July 31 Edinburgh, which is involved in the management of investment trusts, unit trusts and open ended investment companies, pension funds and other discretionary portfolios, had approximately $8 billion in funds under management.
“The deal will certainly be positive for raising Aberdeen’s profile and adding to the group’s resources.” Macrae says.
Ernst & Young made the offer to Edinburgh shareholders on behalf of Aberdeen.
AUTHOR
Craig Phillips
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
