Arlington Securities has clinched its deal to acquire Aberdeen Asset Management’s property division for £50m.
Aberdeen has conditionally agreed to dispose of the entire issued share capital of its UK and continental European investment management business to Arlington.
The price includes £7.3m for net assets.
The division has £4.3bn of assets under management.
Aberdeen will use the proceeds to reduce its bank debt.
Arlington, which became a fund manager last year, overtook bidders including Teesland, Capital & Regional and Pillar for the business.
Aberdeen’s earlier talks with British Land collapsed in 2003.
Aberdeen chief executive Martin Gilbert said: “We have always said that we would never consider selling such a high-quality business for anything other than a fair price, and that was the reason we discontinued talks over a possible sale of the business last year.
“I am therefore more than pleased to be able to announce today’s disposal at a price which we believe reflects the inherent value of the business and its further prospects.”
References: EGi News 05/04/04
