ISIS Asset Management has merged with F&C Management to form the fourth largest fund manager in the UK and a top ten manager of European pension funds with £120bn of assets under management.
F&C is currently a wholly-owned subsidiary of Eureko, the Dutch insurance group. ISIS is owned by Friends Provident, which has a 67% stake in the company. The deal is expected to be worth over £750m to Eureko.
Robert Jenkins, Chief Executive of F&C and proposed Non-executive Chairman of the merged group commented: 'This transaction achieves our aim of a listing for F&C, creates value, deepens our investment talent and does so in a way which will be non-disruptive to our clients. We are very enthusiastic about the merger.'
ISIS will issue 331m new shares under the terms of the deal, which will be split between Friends Provident and Eureko. Friends Provident will receive 145m shares, for which it will pay £250m in cash, at a value of 260p per share, and £128m in new Friends Provident shares.
Eureko will receive the remaining 186m, 76m of which will be placed in the market by Eureko to ensure that ISIS has a free float of at least 25%. The remaining 110m will be retained by Eureko.
Friends will own 51% of the merged group, following completion,, Eureko, including F&C and employees; will hold 23% and there will be a public offering of 26%.
The merged group, which will adopt F&C´s corporate name and brand, will have ISIS Chief Executive, Howard Carter, as its proposed Chief Executive and Robert Jenkins as its proposed Non-executive Chairman. The group will be based in Exchange House, F&C´s London headquarters and expects to achieve pre-tax synergies of £33m by early 2006.
ISIS was advised by Cazenove and Fenchurch Advisory Partners, Friends Provident by Cazenove and Eureko by Lexicon Partners and Citigroup.
Source: Freeman News