Eureko announces completion of merger of F&C Group (Holdings) Limited and ISIS Asset Management PLC

Eureko B.V. is pleased to announce completion of the merger of its asset management subsidiary, F&C, with ISIS (announced on 2 July 2004) today following the satisfaction of all conditions to the merger (including the receipt of regulatory consents and shareholder approvals). The enlarged asset management business has today been renamed F&C Asset Management plc (the “New F&C”).

Value Crystallisation and Proceeds to Eureko
The gross proceeds Eureko will receive as a result of re-structuring its asset management interests will total approximately €1.2 billion in cash and shares, including a shareholding of approximately 21% in the New F&C. This does not include any deferred consideration that may become payable to Eureko.

The total gross proceeds of approximately €1.2 billion includes the estimated consideration that Eureko expects to receive following the sale to EFG Eurobank of Intertrust, Eureko’s Greek asset management business, which was announced on 9 June 2004 and which is expected to complete later this year.

The New F&C
The merger is expected to create a profitable and balanced pan-European asset management business. The combination of the businesses is based on a common vision and complementary business fit. The New F&C intends to maintain continuity of investment management services and standards for its clients and policyholders.

The New F&C had €176 billion of funds under management as at 30 June 2004, making it a top ten manager of European pension assets and a top 5 UK asset management group by reference to assets under management.

Whilst Eureko is no longer the controlling shareholder of the former F&C, its 21% shareholding in the New F&C, together with its board seat, underscores the importance of asset management to Eureko’s business strategy. Eureko is fully committed to remaining a significant shareholder and major client of the New F&C going forward.

The merger has also realised Eureko’s stated objective (announced on 29 January 2004) of achieving a stock market listing for its asset management subsidiary. The capital value creation of approximately €1.2 billion will provide Eureko with significant financial strength and flexibility for the next stage of Eureko’s development.

Source: Eureko

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