Total consideration up to $246m include an initial consideration of $96m payable in cash on completion of the acquisition and $29.9m in new ordinary Ashmore shares, or approximately 5.1 million shares, which will be restricted from sale for a period of up to three years post-completion.
Earn-out consideration of up to a maximum of $120.1m payable in three annual installments based on the achievement of certain financial targets over the three years following completion.
EMM selling shareholders have agreed to invest $9m into EMM managed funds for a minimum period of three years.
Restructuring of the EMM shareholder structure will result in a reduction in the founders’ shareholding and exit of previous shareholder Amundi.
The consideration payable at completion may be reduced to recognize redemptions from EMM’s existing AuM.
Furthermore, Ashmore and EMM have the option not to complete the acquisition should notified redemptions from EMM clients exceed a certain threshold.
The acquisition is subject to customary approvals and conditions and is expected to complete by the end of May 2011.
