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Aberdeen Completes £550 Million Acquisition Of SWIP
Aberdeen Asset Management has completed the acquisition of Scottish Widows Investment Partnership's infrastructure fund management business, completing the purchase of SWIP Lloyds.
Aberdeen Asset
Management has completed the acquisition of Scottish Widows
Investment Partnership's infrastructure fund management business,
completing the purchase of SWIP from Lloyds.
The final deferred top-up payment to Lloyds has been reduced from
£39.4 million($66.36 million) to £38.3 to reflect the completion
of the infrastructure acquisition, payable to Lloyds at the end
of the 12-month period, Aberdeen said in a statement.
The total consideration for the acquisition including the
deferred top-up payment is approximately £550 million.
Application has been made to The UK Listing Authority and The
London Stock Exchange for a listing of 5,952,000 ordinary shares
of 10 pence a share as consideration to trade on The London Stock
Exchange.
The deal, which was announced on 18 November 2013, includes the
main SWIP business and related private equity fund management
arm. The purchase of SWIP's infrastructure fund management
business is expected to complete within the next few weeks.
The agreement represents one of the most significant moves to
date by Lloyds to spin off parts of its business as the bank
seeks to return to full private ownership.
Compared to its plight at the beginning of the century when it
was hit with losses in the capital investment trust business, the
purchase of SWIP represents a remarkable recovery in fortunes for
Aberdeen.
The Lloyds-Aberdeen agreement is an example of transactions made
by firms as they look to recover from post-crisis problems.
The deal also comes at a time of continued merger and acquisition
activity in the wealth and asset management industries. This year
has already seen Singapore-based DBS strike a deal to buy the
Asian private bank of Societe Generale, as well as the merger of
multi-family office SandAire and private investment office Lord
North Street. Other deals have included Old Mutual Wealth’s
acquisition of Intrinsic, a network of independent financial
advisors.
