23rd Mar 2006 13:57
Rathbone Brothers PLC23 March 2006 23 March 2006 Rathbone Brothers Plc Acquisition of Dexia's UK private banking business sanctioned and is expected to complete on 5 April 2006 Rathbones is pleased to announce that the scheme pursuant to Part VII of theFinancial Services and Markets Act 2000 to transfer the investment managementand private banking business of Dexia Banque Internationale a Luxembourg S.A.,London Branch (the "Business") from Dexia to Rathbone Investment ManagementLimited was approved at a hearing in the High Court earlier today. The proposed acquisition, originally announced on 13 January 2006, is expectedto complete on 5 April 2006 and Rathbones will be responsible for the Businessfrom 6 April 2006. A further announcement will be made following completion. The Business being purchased consists of the former business of Ely FundManagers, which was originally acquired by the Dexia group in 2001 and which hasbeen integrated with the personal banking business of Dexia-BIL, London Branch.The maximum total consideration for the investment management part of theBusiness will therefore not exceed £14 million and the deferred considerationperiod will be six months after closing. The UK private banking loan and depositbook is being purchased at net book value. Mark Powell, chairman of Rathbones, commented: "Following completion our new colleagues will move to our offices and we greatlylook forward to welcoming them and their clients to Rathbones." The Business will be integrated into Rathbone Investment Management Limitedwhich is responsible, within Rathbones, for the bespoke management ofdiscretionary investment portfolios for individuals, their trusts, charities andpension funds. Rathbones manages £10 billion of funds, including £1.3 billionmanaged by Rathbone Unit Trust Management Limited (as at 2 March 2006). The acquisition will expand Rathbones' role as a manager of investmentportfolios for charities and increase its business in the management of pensionaccounts for private individuals. In addition, it is expected that economies ofscale will be generated for the discretionary managed portfolio being acquiredthrough the use of Rathbones' operations platform. Overall, the acquisition isexpected to be earnings-enhancing in 2007. Enquiries: Rathbone Brothers Plc www.rathbones.comMark Powell, Chairman 020 7399 0000Andy Pomfret, Chief ExecutiveEmily Morris, Marketing Director Notes for editors: Rathbone Brothers Plc Rathbone Brothers Plc specialises in providing, through its subsidiaries,personalised investment management and wealth management services for privateclients and trustees, including discretionary asset management, tax planning,trust and company management, and banking services. It manages £10 billion offunds, including £1.3 billion managed by Rathbone Unit Trust Management Limited(as at 2 March 2006). Dexia Private Banking UK Dexia Private Banking UK is the product of the integration of the personalbanking activities of Dexia-BIL's branch in London and Ely Fund Managers, whichwas established in 1983 and acquired by Dexia-BIL in 2001. Ely Fund Managers acquired Pembroke Asset Management (a multi manager operation)in 1995 and Independent Investment Management (a charity fund managementbusiness) in 2000. Dexia Banque Internationale a Luxembourg is one of the major subsidiaries of theDexia Group, one of the top-15 banking groups in Europe. Founded in 1856,Dexia-BIL is specialised in private banking, asset management and fundadministration, and it operates in several countries worldwide. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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