23rd Mar 2007 07:02
Aberdeen Asset Management PLC23 March 2007 ABERDEEN ASSET MANAGEMENT PLC Proposed Acquisition of certain Australian fund management businesses of Deutsche Bank Aberdeen Asset Management PLC ("Aberdeen"), the UK-listed global asset manager,announces that it has entered into an agreement with Deutsche Australia Limitedto acquire certain Australian fund management businesses (the "Australian TargetBusinesses") for a cash consideration that is not expected to exceed AU$148million (£61 million) (the "Acquisition"). The Australian Target Businesses comprise an Australian equity and fixed incomeand money market unit trust business with AU$3.5 billion (£1.4 billion) inassets under management, an equity segregated mandate business with AU$3.2billion (£1.3 billion) in assets under management, a fixed income and moneymarket segregated mandate business with AU$2.8 billion (£1.1 billion) in assetsunder management, and an insurance sub-advised mandate business with AU$4.5billion (£1.8 billion) in assets under management (all assets under managementfigures as at 31 December 2006). The consideration is subject to adjustment inrespect of revenues generated from the Australian Target Businesses, and netasset value, at or shortly after completion. The key benefits of the Acquisition for Aberdeen are as follows: • Aberdeen's presence in the sizeable Australian institutional asset management sector will be significantly enhanced, both among corporate and superannuation buyers and the growing mezzanine market that includes master trusts and dealer groups. Aberdeen sees Australia as an attractive and growing asset management market. • The Australian Target Businesses' fixed income team will strengthen Aberdeen's global fixed income asset management platform, by reuniting Deutsche Bank's Sydney-based team with the London and Philadelphia businesses that Aberdeen has successfully integrated since their purchase 18 months ago. • The addition of Australian equity assets adds to the mainstream onshore management capability, which will complement Aberdeen's existing mainly overseas-managed specialist funds. • The Acquisition is expected to generate value for Aberdeen's shareholders, chiefly through the elimination of overlapping costs and the scope for regional integration. The Acquisition is not expected to have a material impact on Aberdeen's earnings per share. Commenting on the Acquisition, Martin Gilbert, Chief Executive of Aberdeen,said: "This transaction is a good fit and timely. It promises to transform ourAustralian business by bringing additional scale and client reach. Theinstitutional market is growing at a phenomenal rate given its relativematurity. While we have seen good organic growth in specialist funds, we realisethat to be an effective mainstream manager we have to have more of a localproduct manufacturing capability, which is what we now gain. We also see ourglobal expertise enhanced, and the potential in turn for more inward productmarketing. The assets we are acquiring will deliver benefits in precisely thoseareas we lack." Aberdeen successfully completed a similar transaction with Deutsche Bank AG("Deutsche Bank") in 2005 when it acquired certain fund management businesses inLondon and Philadelphia then managing £46.3 billion (AU$111.3 billion). As then,the Acquisition will see the incumbent fixed income and money market teams, ledby Bill Bovingdon, join the Aberdeen Group to continue to manage their clients'assets. The teams share the same investment philosophy and process as Aberdeen'sexisting fixed income teams located in London, Philadelphia and Singapore. The Australian equity mutual fund and segregated mandates will be managed byAberdeen's existing equities team based in Sydney, led by Mark Daniels. Aberdeen's Australian business is headed by Charlie Macrae. The consideration will be financed from internal resources and bank borrowings.The Acquisition is subject to customary regulatory approvals and is expected tocomplete by 1 July 2007. The Australian Target Businesses generated revenues of AU$30.7 million (£12.5million) in the year to 31 December 2006. Under Deutsche Bank's ownership thesebusinesses made losses before tax of AU$3.7 million (£1.5 million) in the yearto 31 December 2006. Aberdeen expects to operate the Australian TargetBusinesses from a reduced cost base. The Australian Target Businesses isanticipated to have gross assets of AU$12.0 million (£4.9 million) as atcompletion. JPMorgan Cazenove is acting as financial adviser and broker to Aberdeen. Enquiries Aberdeen 020 7463 6000Martin Gilbert JPMorgan Cazenove 020 7588 2828Ian HannamRichard LockeJames Wood-Collins Maitland 020 7379 5151Neil Bennett JPMorgan Cazenove, which is authorised and regulated in the United Kingdom byThe Financial Services Authority, is acting exclusively for Aberdeen and for noone else in relation to the Acquisition and will not be responsible to anyoneother than Aberdeen for providing the protections afforded to customers ofJPMorgan Cazenove or for providing advice in relation to the Acquisition or onany matter referred to herein. NOTES TO EDITORS Aberdeen Asset Management PLC Aberdeen Asset Management PLC is an international investment management groupmanaging assets principally on behalf of leading national and corporate pensionfunds, central banks and other financial institutions from its offices locatedaround the world. The Group's areas of activity are chiefly equities, fixedincome and property. Total group assets under management and advice were £76.3billion (AU$192.8 billion) as at 31 January 2007. Key individuals at the Australian Target Businesses Bill Bovingdon, Managing Director, Deutsche Asset Management (Australia) Limited Deputy Chief Investment Officer and Head of fixed income for Australia; vicechair of Global Fixed Income Alpha and Risk Committee (ARC): Sydney. He joinedDeutsche Asset Management (Australia) Limited in 1999 after 15 years ofexperience as head of domestic fixed income for Schroders Investment Managementand head of fixed income portfolio management and earlier, as fixed incomespecialist, at Treasury Corporation of Victoria. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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