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Henderson to buy Threadneedle operations
Posted on Monday, 20 March 2017 10:47
Henderson High Income Trust has agreed to purchase the assets of St Peter Port-based closed ended investment group Threadneedle UK Select Trust for an undisclosed amount.
The seller’s stockholders will be entitled to new scrip or cash by way of a scheme of reconstruction and winding up.
Completion is expected by the end of June 2017, subject to shareholder, regulatory and tax approvals.
Separately, Henderson plans to complete a stock issuance programme in order to finance future investments.
Margaret Littlejohns, chairman of the buyer, said: "We believe that our long term track record of delivering regular high income and capital growth over time from a portfolio predominantly invested in UK equities will be a compelling rollover opportunity for Threadneedle UK Select shareholders."
The Guernsey-headquartered seller claims to be a leading global asset manager, with over 2,000 employees worldwide.
Threadneedle posted revenue of GBP 1.31 million in the six months ended 30th June 2016, a significant decline on GBP 2.27 million in the corresponding timeframe of 2015.
Net profit totalled GBP 919,000 for the first half of 2016 (H1 2015: GBP 1.83 million).
Incorporated in 1934, London-based Henderson is a global asset group, with more than GBP 101.00 billion worth of operations under its management.
The company, which previously traded as TR High Income Trust, has over 1,000 employees and offices in 19 cities globally.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 173 deals targeting funds, trusts and other financial vehicles announced worldwide so far 2017.
The largest of these was CVC Capital Partners’ GBP 400.00 million minority investment in UK-based Pension Insurance in February.
This was followed by US-headquartered New York Mortgage Trust’s USD 138.00 million convertible notes offering in January.
UK firms GCP Asset Backed Income Fund, John Laing Environmental Assets Group and Octopus Titan VCT, among others, have also been targeted this year.
© Zephus Ltd