Alliance Trust PLC (LON:ATST) has agreed on the sale of its subsidiary company Alliance Trust Savings (ATS) to Interactive Investor, the UK’s second largest investment platform for a total of £40mln.
As at 30 June 2018, ATS, which represents 1.3% of Alliance Trust's portfolio, had a fair value of £38mln and its Dundee building was valued at £4.9mln.
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The sale is another step in FTSE 250-listed trust’s strategy to focus on its global equity portfolio following the sale of its in-house investment management arm to Liontrust Investment Management, as well as the recent agreement to sell off most of its private equity assets.
The group said the proceeds from the sale will be invested in its global equity portfolio, managed by Willis Towers Watson, which following completion will represent close to 100% of the trust’s investment portfolio.
Alliance Trust’s chairman, Lord Smith of Kelvin commented: “The two businesses are highly complementary and ATS customers, many of whom are Alliance Trust shareholders, will benefit from Interactive Investor’s similar low flat-fee structure, as well as its increased scale and focus.
“A key consideration for the Board was a commitment to maintaining ATS' presence in Scotland. We are therefore very pleased that it plans to invest in ATS’ Dundee operating centre.”
Richard Wilson, CEO of ii, commented: "This is another important step in our ambition to build the UK's best investment platform.
“The acquisition brings together the country's two largest fixed price providers, adding significant scale to ii, and reinforcing our ability to deliver excellent choice, value and service to all our customers."
The sale is subject to regulatory approval from the PRA and FCA.