Aberdeen Asset Management PLC (‘Aberdeen’ or ‘the Group’) announced its entry into a definitive agreement with Credit Suisse Group AG (‘Credit Suisse’) to acquire certain fund management assets and businesses (‘the Acquired Business’, ‘the Acquisition’), subject to shareholder and certain regulatory approvals.
The purchase consideration will be satisfied by the issue to Credit Suisse of a
maximum of 240 million new ordinary shares in Aberdeen, equivalent to 24.97 percent of the enlarged Group’s issued ordinary share capital, valued at £250 million based on the Aberdeen closing share price of 104.25 pence on December 30, 2008. The actual number of new ordinary shares to be issued to Credit Suisse will depend on the level of run-rate revenues delivered at the closing of the Acquisition, which is anticipated will take place on, or around, June 30, 2009 (‘the Closing’).
The assets under management (‘AuM’) the subject of the Acquisition were CHF75 billion (£40 billion) as at November 30, 2008, with associated run-rate revenues of approximately CHF220 million (£118 million) per annum and were this level of run-rate revenues to be delivered at Closing, the maximum purchase consideration of 240 million new ordinary shares would be payable.
The Acquired Business is a long-only traditional asset manager with a leading presence in Europe, Asia and Australasia. It offers a broad product range, diversified predominantly across fixed income, money market and equities, with a variety of investment styles that will be integrated into Aberdeen’s investment processes. Its products are sold primarily to third- party clients, with a significant minority of assets sourced through Credit Suisse’s Private Banking division, one of the world’s largest wealth managers.
Aberdeen has agreed an extension of the existing distribution agreement with Credit Suisse, to be signed on Closing. This will give Aberdeen greater access to the banking network of Credit Suisse.
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