10th Mar 2005 07:05
Aberdeen Asset Management PLC10 March 2005 ABERDEEN ASSET MANAGEMENT PLC ANNOUNCEMENT RE CENTURY GROUP CONTRACT Aberdeen notes the announcement by Britannic Group PLC of its conditionalagreement to purchase Century Group Limited ("Century") and of its intention toserve notice to terminate Century's Investment Management Agreement withAberdeen as soon as practicable after completion of the transaction inaccordance with the terms of that agreement. As a consequence of such notice of termination, Century would be obliged toredeem £11.3 million of preference shares held by Aberdeen on the expiry of the6 month notice period. Aberdeen would use the redemption proceeds to prepay bankdebt, thereby reducing its gearing, on a pro forma basis as at 30 September2004, from 127.4% to approximately 119%. Aberdeen currently manages approximately £650 million of equities and £850million of fixed interest investments for Century, representing approximately6.4% of the Group's total assets under management. Income from this contractrepresented approximately 2.1% of the total income of Aberdeen's fund managementdivision for the year to 30 September 2004. The loss of this contract, whilst disappointing, will have no effect onAberdeen's results for the year to 30 September 2005 and, taking account ofanticipated cost savings and efficiencies which can be achieved and the interestsaving from prepayment of bank debt, Aberdeen believes that the impact onearnings for future years will not be significant. Martin Gilbert, Chief Executive of Aberdeen, said: "We have enjoyed a long and successful relationship with Century during a 16year period that has seen substantial growth by both groups. Whilst we'redisappointed that the relationship seems likely to end, we wish Chris Little andhis team every success with this transaction." - END - For further information Fiona Piper, Maitland 0207 379 5151 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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