24th Oct 2013 11:05
LONDON (Alliance News) - Aberdeen Asset Management PLC Thursday said it is in discussions with Lloyds Banking Group PLC over a possible acquisition of the bank's Scottish Widows Investment Partnership, an asset manager with GBP145.79 billion in funds under management.
Aberdeen also confirmed the talks were also focused on the possibility of a strategic partnership with Lloyds.
Scottish Widows Investment Partnership is a subsidiary Scottish Widows insurance, which wouldn't be included the sale being discussed.
Aberdeen said an acquisition would be funded by the issuance of new Aberdeen shares to Lloyds, with additional deferred payments in cash, conditional on the performance of the asset manager over a period of years.
Aberdeen said it expects any transaction agreed would be "materially earnings per share enhancing", while it would also reinforce the asset manager's commitment to a progressive dividend policy and to return surplus capital to shareholders over time.
Aberdeen said the potential acquisition would add scale and diversity to its product range, helping it to achieve organic growth.
Aberdeen shares were quoted at 446.00 pence, up 4.8%.
Lloyds shares were Thursday quoted at 79.75 pence, up 2.4%.
By Samuel Agini; [email protected]; @samuelagini
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