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.”
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