1st Feb 2006 09:28
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.1 February 2006 Stock Exchange Announcement LIONTRUST ASSET MANAGEMENT PLC New European Equity Fund Management Team Liontrust Asset Management PLC ("Liontrust") is pleased to announce that GaryWest and James Inglis-Jones will be joining Liontrust in August 2006 jointly todevelop a European equity investment process. Liontrust intends to launch anumber of collective investment vehicles that will adopt this new investmentprocess, including alternative investment funds, authorised unit trusts, andoffshore funds. In addition, Liontrust will offer the European equityinvestment process to the institutional market via segregated accounts andpooled pension funds. Gary West and James Inglis-Jones previously held seniorpositions at JP Morgan Fleming in the European investment division, of whichGary was co-head until his departure. They are currently with Polar Capitalwhere they established a European market neutral product.It is intended that European Equity fund management services will be providedto Liontrust managed collective investment vehicles and segregated accounts bya new group company, Liontrust European Investment Services Limited ("LEIS").It is intended that Liontrust will own 51% of the equity of LEIS, with thebalance being acquired by Gary West, James Inglis-Jones, Jeremy Lang andWilliam Pattisson. The investments by Jeremy Lang and William Pattisson reflectthe roles that they will have in developing the European Equity business.It is proposed that the terms of the investment in LEIS will includearrangements whereby 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% discount to Liontrust's revenuemultiple at the time of the buy-out. The minority shareholders will be grantedan option to require Liontrust to buy out their shares in LEIS after five yearsbased on the same valuation formula. The consideration for the buy-out will besatisfied at the election of Liontrust by the issue of new Liontrust shares ora mixture of new Liontrust shares and cash. Any Liontrust shares issued asconsideration will be subject to appropriate lock-up arrangements.The arrangements relating to LEIS have been agreed in principle, but are allsubject to contract and a further announcement will be made in due course.For further information please contact:Liontrust Asset Management PLC:Nigel Legge Tel: 020-7412 1700JP Morgan Cazenove Limited:Richard Locke Tel: 020-7155 4706JP Morgan 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 JP Morgan 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.ENDSLIONTRUST ASSET MANAGEMENT PLCRelated Shares:
Liontrust Asset Management