Aberdeen Asset Management Plc Announces Acquisition and Strategic Relationship with Lloyds Banking Group PLC


Monday, 18 Nov 2013 02:00am EST 

Aberdeen Asset Management Plc (Aberdeen or the Group) announced that it has entered into a definitive agreement to form a long-term strategic relationship with Lloyds Banking Group plc (Lloyds), as part of which Aberdeen will acquire Scottish Widows Investment Partnership Group Limited (SWIP) and SWIP's related private equity and infrastructure fund management businesses (the Acquired Business) (the Acquisition and, together with the long-term strategic relationship with Lloyds, the Transaction). The Acquired Business includes the Investment Solutions division of SWIP which is a separate investment group that is responsible for the design, development and management of investment solutions for Lloyds' wealth clients. The strategic relationship will operate across Lloyds' Wealth, Insurance, Commercial Banking and Retail businesses and is expected to result in a stronger asset management offering for customers. The consideration for the Acquisition of approximately £550 million (calculated by reference to an Aberdeen share price of 420 pence per share) will be satisfied by the issue of 131.8 million new Aberdeen shares to Lloyds, equivalent to an approximately 9.9% stake in the Group following completion of the Acquisition (referred to as the Enlarged Group). In addition, there will be a performance-related five year earn-out payment of up to £100 million dependent on growth delivered by the strategic relationship with Lloyds in the Investment Solutions business. 

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