Post by Fletchsmile on Mar 6, 2017 21:37:07 GMT 7
Aberdeen Asset Management - Merger with Standard Life
Standard Life and Aberdeen have agreed terms for an all-share merger of the two groups. Aberdeen shareholders will receive 0.757 new Standard Life shares for each existing Aberdeen share. Based on Standard Life's closing price on 3 March 2017 (the last business day prior to the date of the announcement) this values each Aberdeen share at 286.5p, and the company as a whole at £3.8bn.
Should the merger go ahead, Aberdeen shareholders will own approximately 33.3% of the combined group, with Standard Life shareholders holding the remaining 66.7%. Aberdeen shares rose 7.3% following the announcement.
Hargreaves Lansdown's view:
Aberdeen has been seen as a potential acquisition target for some time. With assets under management (AUM) of a shade over £300bn it is big, but no giant by global standards. In an industry where size matters, both to reduce average costs and increase cross-selling opportunities, that put it in the 'buy or be bought' category.
Potential buyer Standard Life has been transforming itself from life insurer to asset manager in recent years. That's stood it in good stead since the government turned the pensions market on its head, scrapping the requirement for pensioners to buy an annuity.
The merger solves Aberdeen's issues of scale while also propelling Standard Life into the big league, creating the UK's largest asset manager and aiming to deliver £200m in annual cost savings. With £660bn in assets under management (AUM) the group would also be the second largest in Europe.
contd...
www.hl.co.uk/shares/share-research/201703/aberdeen-asset-management-merger-with-standard-life
Standard Life and Aberdeen have agreed terms for an all-share merger of the two groups. Aberdeen shareholders will receive 0.757 new Standard Life shares for each existing Aberdeen share. Based on Standard Life's closing price on 3 March 2017 (the last business day prior to the date of the announcement) this values each Aberdeen share at 286.5p, and the company as a whole at £3.8bn.
Should the merger go ahead, Aberdeen shareholders will own approximately 33.3% of the combined group, with Standard Life shareholders holding the remaining 66.7%. Aberdeen shares rose 7.3% following the announcement.
Hargreaves Lansdown's view:
Aberdeen has been seen as a potential acquisition target for some time. With assets under management (AUM) of a shade over £300bn it is big, but no giant by global standards. In an industry where size matters, both to reduce average costs and increase cross-selling opportunities, that put it in the 'buy or be bought' category.
Potential buyer Standard Life has been transforming itself from life insurer to asset manager in recent years. That's stood it in good stead since the government turned the pensions market on its head, scrapping the requirement for pensioners to buy an annuity.
The merger solves Aberdeen's issues of scale while also propelling Standard Life into the big league, creating the UK's largest asset manager and aiming to deliver £200m in annual cost savings. With £660bn in assets under management (AUM) the group would also be the second largest in Europe.
contd...
www.hl.co.uk/shares/share-research/201703/aberdeen-asset-management-merger-with-standard-life
