16th Jun 2006 11:37
Not for release, publication, transmission or distribution directly orindirectly in or into the United States, Canada, Australia, Japan, New Zealand,the Republic of South Africa or the Republic of Ireland.16 June 2006 Stock Exchange Announcement LIONTRUST ASSET MANAGEMENT PLC European Equity Fund Management Team On 1 February 2006, Liontrust Asset Management PLC ("Liontrust") announced thattwo experienced European equity fund managers, Gary West and JamesInglis-Jones, would be joining Liontrust, which they did on 1 March 2006. Sincethat date, they have been jointly developing a European equity investmentprocess which, together with the arrangements described below, will enableLiontrust to launch a number of collective investment vehicles including long/short investment funds and long-only unit trusts and offshore funds based onthe new European equity documented process. It will also be offered to theinstitutional market via segregated accounts and pooled pension funds.Consistent with its ambitions for the strategic development of the business,Liontrust is focused on seeking to provide an appropriate level of equityincentivisation for its employees. Accordingly, Liontrust has today enteredinto a conditional agreement to implement the proposals described in theannouncement made on 1 February 2006 relating to a proposed investment in a newgroup company, Liontrust European Investment Services Limited ("LEIS"). LEIS isto provide European equity fund management services to support the newinvestment process.The principal terms of the proposals provide for the acquisition by Liontrustof a 51 per cent. equity interest in LEIS, with the balance to be acquired byGary West, James Inglis-Jones, Jeremy Lang and William Pattisson. Theinvestments by Jeremy Lang and William Pattisson reflect the roles that theywill have in developing the European equity business. Liontrust will alsoprovide further funding to LEIS, both for regulatory and working capitalpurposes, (resulting in its total investment in LEIS totalling ‚£1.35 million (‚£0.15m for ordinary shares in LEIS and ‚£1.2m for cumulative redeemablepreference shares in LEIS)). Liontrust will be granted an option to buy out theminority shareholders in LEIS after five years (or in certain circumstancessooner) on a valuation that is at a 25 per cent. discount to Liontrust'srevenue multiple at the time of the buy-out. The minority shareholders willalso be granted an option to require Liontrust to buy out their shares in LEISafter five years (or in certain circumstances sooner) based on the samevaluation formula.The consideration payable under the option (and certain of the leaverprovisions comprised in the proposals) is to be satisfied through the issue ofnew Liontrust shares, or a mixture of new Liontrust shares and cash, or cashonly. The maximum consideration payable under the option (and certain of theleaver provisions) granted to Liontrust has been capped such that any paymentwould not exceed 25 per cent. of the share price of Liontrust at the relevantdate multiplied by the issued share capital of Liontrust at the time of grantless the amount Liontrust paid for its investment in LEIS. Any Liontrust sharesissued as consideration will be subject to appropriate lock-up arrangements.For further information please contact:Liontrust Asset Management PLC:Nigel Legge or Vinay Abrol Tel: 020-7412 1700JPMorgan Cazenove Limited:Richard Locke Tel: 020-7155 4706NotesGary West and James Inglis-Jones previously held senior positions at JPMorganFleming in the European investment division of which Gary was co-head until hisdeparture. More recently, Gary and James worked at Polar Capital where theyestablished a European Market Neutral product. Gary West has been managingfunds since 1988. In 1999, after four years at Fleming Investment Management(where he worked alongside Liontrust's Joint Investment Director, WilliamPattisson), he was promoted to joint head of the European equity department.James Inglis-Jones was a senior portfolio manager within JPMorgan FlemingEuropean equity group with responsibility for a wide range of institutional andretail portfolios. Gary West and James Inglis-Jones joined Liontrust on 1 March2006.LEIS is a new group company, which will provide European equity fund managementservices in relation to the investment process developed by Gary West and JamesInglis-Jones. As at the date of this announcement, LEIS has not traded and itsgross assets and profits were nil. The first accounts of LEIS will be for theperiod to 31 March 2007.Further information is contained in a circular sent to shareholders today.Copies of the circular have been submitted to the UK Listing Authority and areavailable for inspection at the Document Viewing Facility, which is situatedat:The Financial Services Authority25 The North ColonnadeCanary WharfLondonE14 5HSTel : 020 7676 1000JPMorgan Cazenove Limited, which is authorised and regulated in the UnitedKingdom by the Financial Services Authority, is acting as financial adviser toLiontrust in relation to matters described in this announcement and is notacting for any other person and will not be responsible to any other person forproviding the protections afforded to customers of JPMorgan Cazenove Limitednor for advising them on the contents of this announcement.The release, publication, transmission or distribution of this announcement injurisdictions other than the United Kingdom may be restricted by law andtherefore persons in such jurisdictions into which this announcement isreleased, published, transmitted or distributed should inform themselves aboutand observe such restrictions. Any failure to comply with the restrictions mayconstitute a violation of the securities laws of any such jurisdiction.ENDS 1 ENDLIONTRUST ASSET MANAGEMENT PLCRelated Shares:
Liontrust Asset Management