Proactive Investors - Run By Investors For Investors

Market welcomes Aberdeen Asset's Scottsh Widows wealth buy

Market welcomes Aberdeen Asset's Scottsh Widows wealth buy

Shares in fund manager Aberdeen Asset Management (LON:ADN) leapt higher afer it confirmed the acquisition of the wealth management arm of Scottish Widows from Lloyds Banking.

Lloyds will become a 10% shareholder in Aberdeen as a result of the £660mln all-share deal, which includes £100mln deferred consideration.

The deal increases Aberdeen’s funds under management to £350bn, though does not include the core life and pensions business of Scottish Widows.

Aberdeen added the deal would boost annual revenues of £234mln and “materially enhance” earnings in the first full financial year after completion.

Martin Gilbert, Aberdeen’s chief executive, said the deal would strengthen its investment capabilities, add new distribution channels and scale to the Aberdeen business across a range of asset classes while also setting up a strategic relationship with Lloyds Banking.

Aberdeen reported underlying profits rose by 39% to £483mln in the year to September, with the annual dividend also increased by 39% to 16p.

View full ADN profile View Profile

Aberdeen Asset Management Timeline

Related Articles

January 28 2019
"With multiple collaboration agreements and investment from industry we view the company as undervalued," says Northland

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use