Aberdeen Asset Management has acquired investment trust group Glasgow Investment Managers for £8.95m.
The buyout was made through the acquisition, subject to regulatory approval, of Sutherland Holdings, which has a 50.1% interest in Glasgow IM. Aberdeen also intends to purchase the remaining 49.9% in Glasgow from Shires Income plc.
The total consideration, to be satisfied in cash, for a 100% interest in Glasgow will be £6.25m plus the value of net tangible assets, estimated at £2.7m.
Glasgow manages three investment trusts, Glasgow Income trust, Shires Income and Shires Smaller Companies and also manages funds on behalf of a number of institutional clients. Total assets under management at 31 July 2007 were approximately £429m.
The Glasgow investment team, led by Iain Lynn, will be joining the Aberdeen Group to ensure continuity of management of these mandates.
Martin Gilbert, chief executive of Aberdeen, says: "We are delighted that Iain Lynn and his team have agreed to join Aberdeen. They have demonstrated good performance over a long period, they manage well-established funds and they have a very strong relationship with their clients.
“We have a long-established strategy of using selective acquisitions to complement our rapid organic growth and these trusts represent an exciting addition to the range of investment companies under our management.
“The acquisition of Glasgow will further strengthen our UK equity capabilities and enhance Aberdeen's position as a leading manager of closed end funds."IFAonline
100 new clients
Achievements, charity work and other happy snippets
Square Mile’s series of informal interviews
Partner Insight: The rise in demand for DFM and multi manager solutions has been largely driven by new mandates from the regulator, says James Bampton, head of UK intermediary distribution at Architas