31st Jul 2019 11:11
(Alliance News) - Fund manager Liontrust Asset Management PLC said Wednesday it has agreed to acquire Neptune Investment Management Ltd for up to GBP40 million in shares.
Neptune Investment Management manages funds focused on global equity and emerging markets, and as at June 30 had GBP2.81 billion in assets under management.
Liontrust will issue 4.6 million initial consideration shares worth GBP35 million on the deal's completion. The company will then issue 661,813 shares worth GBP5 million within 30 business days of the third anniversary of the completed acquisition, subject to the average assets under management managed by Neptune being at least GBP4 billion.
Once the acquisition is completed, Neptune Investment team will join Liontrust and be renamed the Liontrust Global Equity Team.
The deal is conditional on gaining the applicable regulatory approvals, with completion scheduled for October.
The acquisition is expected to broaden Liontrust's fund range and investments skills into areas not covered by its current management teams, and will also increase the group's assets under management by GBP2.8 billion to GBP17 billion.
"Neptune is a great acquisition for Liontrust and will enhance our already excellent investment proposition in areas where there is strong demand such as Global equities, Equity Income and Emerging Markets equities," said Chief Executive John Ions.
"We have created an environment to give fund management talent with robust and repeatable investment processes the best possible opportunity to deliver good, long-term returns for our clients. Robin and the rest of the team at Neptune will be able to focus on managing their funds and not be distracted by other day-to-day aspects of running a business," Ions added.
Shares in Liontrust Asset Management were up 1.6% at 815.00 pence on Wednesday.
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Liontrust Asset Management