2nd Oct 2008 07:27
ABERDEEN ASSET MANAGEMENT PLC
Aberdeen Asset Management PLC ('Aberdeen' or the 'Company') announces that it has entered into a business and capital alliance with Mitsubishi UFJ Trust and Banking Corporation ('MUTB').
MUTB is a wholly owned subsidiary of Mitsubishi UFJ Financial Group, Inc. ('MUFG'). MUFG, listed on the Tokyo Stock Exchange with a market capitalisation of approximately $92 billion1, is the largest banking organisation in Japan and the world's second largest bank holding company with $1.1 trillion in bank deposits. MUTB has $245 billion of assets under management, giving it a market leading position in the Japanese institutional market. MUTB aims to offer its clients a full range of investment products across all asset classes.
Under the terms of the business alliance, MUTB has agreed to promote Aberdeen products in the Japanese institutional marketplace. The agreement gives MUTB exclusive rights to distribute selected Aberdeen products to Japanese institutional investors. The products specified initially include:
Emerging market equities
Global equities
Global fixed income
Further products may be added in due course.
Under the terms of the capital alliance, MUTB intends initially to acquire 9.9% of Aberdeen's issued share capital from certain existing shareholders.
MUTB may, if it wishes, purchase further shares up to an agreed maximum aggregate shareholding of 19.9% of Aberdeen's issued share capital. The investment by MUTB in Aberdeen is intended to align the interests of both parties in driving the success of the business alliance. MUTB will also be entitled to appoint a non-executive director to the Board of Aberdeen if its holding reaches 15% or more of Aberdeen's issued share capital. This right will fall away if the business alliance is terminated after two years. MUTB has agreed that, for a period of 18 months from today, it will not raise its holding beyond 19.9% (although this restriction will cease to apply upon the termination of the business alliance between MUTB and Aberdeen, upon MUTB losing any right to appoint a person as a director of Aberdeen, in the event that an announcement is made by a third party of a possible or firm intention to make an offer for the issued share capital of Aberdeen pursuant to Rules 2.4 or 2.5 of the Takeover Code, or with the prior written consent of Aberdeen).
Aberdeen understands that the acquisition of shares in excess of 9.9% of Aberdeen's issued share capital by MUTB is conditional upon certain regulatory clearances. MUTB has already received a number of such clearances and hopes to receive the remainder in the near future.
MUTB also has anti-dilution rights in respect of its shareholding in Aberdeen. MUTB has agreed not to sell the initial stake acquired except in agreed circumstances for a period of one year. For the purposes of calculating the percentage of shares held in relation to MUTB's anti-dilution and director appointment rights, shares issued pursuant to Aberdeen's employee share schemes, on exercise of conversion rights under the existing Convertible Preference Share Units or Bonds or in circumstances where MUTB is not able to exercise its anti-dilution rights will be disregarded.
The key benefits of the alliance for Aberdeen include:
Japan is the second largest pensions market in the world (with assets estimated at $3,084bn)2. The alliance will provide Aberdeen with a cost effective and advantageous route to develop its business in Japan.
Japanese institutions and pension schemes are increasingly allocating assets outside their domestic market and via specialised mandates - both of which are expected to be to Aberdeen's advantage given the strength of its global equity and fixed income capabilities.
MUTB is one of the most respected names in Japan. With pension sales offices throughout Japan, MUTB provides an established and highly reputable platform on which to promote Aberdeen's investment capabilities across the Japanese market.
The capital alliance ensures that the interests of both parties are aligned in developing new business together in the Japanese market.
Commenting on the alliance, Martin Gilbert, CEO of Aberdeen, said:
"Aberdeen's partnership with MUTB provides an exciting opportunity to enhance our global distribution and broaden our client base. It accelerates a strategic objective of establishing ourselves in Japan, a key market for us. Furthermore our strong product offerings in global equities, emerging market equities and global fixed income complement the trend of Japanese investors looking to invest overseas."
Aberdeen's preliminary annual results for the year to 30 September 2008 will be announced on Monday, 1 December 2008.
JPMorgan Cazenove Limited is acting as financial adviser to Aberdeen in connection with the transaction. Deutsche Securities Inc. (Japan) is acting as financial adviser to MUTB in connection with the transaction.
1 Bloomberg as at 30 September 2008
2 2007 Global Pension Assets Survey, Watson Wyatt Worldwide (data as at 31 December 2006)
There will be a conference call briefing for analysts and investors at 08:00 BST on Thursday, 2 October 2008. Dial-in details are as follows:
Freefone dial-in number (from UK): 0800 626 606
Overseas direct dial-in: 01296 480 100
Passcode: 669 452
Enquiries
Aberdeen Tel: 020 7463 6000
Martin Gilbert/Bill Rattray
JPMorgan Cazenove Tel: 020 7588 2828
Ian Hannam/Piers Davison/Neil Haycock
Maitland Tel: 020 7379 5151
Neil Bennett Tel: 07900 000 777
Charlotte Walsh Tel: 07813 889 660
JPMorgan Cazenove Limited, which is authorised and regulated in the UK by the Financial Services Authority, is acting as financial adviser to Aberdeen and no one else in connection with the transaction and will not be responsible to anyone other than Aberdeen for providing the protections afforded to the clients of JPMorgan Cazenove Limited, or for providing advice in connection with the transaction or any other matter referred to herein.
Deutsche Securities Inc. (Japan) is acting as financial adviser to MUTB and no one else in connection with the transaction and will not be responsible to anyone other than MUTB for providing the protections afforded to the clients of Deutsche Securities Inc. (Japan) nor for providing advice in relation to the transaction or any other matter referred to herein. Deutsche Securities Inc. (Japan) is the investment banking arm of Deutsche Bank AG in Japan. Deutsche Bank AG is authorised under German Banking Law (competent authority: BaFin - Federal Financial Supervisory Authority) and regulated by the Financial Services Authority for the conduct of UK business.
Related Shares:
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