UK - Aberdeen Asset Management has acquired Edinburgh Fund Managers in an all share deal worth £36m.
The offer was accepted unanimously by EFM’s management.Aberdeen incorporate EFM’s institutional business into its own and sell the retail funds arm to New Star Asset Management for £33m.
Aberdeen will use the proceeds to reduce the £174m debt and pay additional pension contributions of £9m to help close the £18.4m FRS17 deficit in the EFM Retirement and Death Benefits Plan.
Aberdeen says there is an “excellent strategic fit” between the two businesses and the deal will strengthen its institutional equity and fixed income capabilities.
Aberdeen also says using EFM’s Dundee back office facilities will “reduce expenses”.
EFM chairman Sir Charles Nunneley said: “The board is pleased to recommend the Aberdeen offer.
“It gives shareholders the opportunity to participate in the development of a larger independent Scottish fund management company with complementary investment teams.
“The Edinburgh brand will remain the focus for our important investment trust clients.
“After a period of uncertainty for the group, I believe this represents a satisfactory outcome not only for our shareholders but also for our clients, employees and pensioners.”
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.