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.
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