Switzerland-based financial services company Credit Suisse has signed an agreement to sell part of its global investors traditional asset management business in return for up to 24.9% of the enlarged share capital of Aberdeen Asset Management.
The stake is valued at approximately CHF381 million as of December 30, 2008. The sale comprises CHF75 billion of assets under management and includes the majority of the global investors (GI) business in Europe, the US and Asia Pacific. As part of the transaction, Credit Suisse will have a seat on the board of Aberdeen.
The transaction is subject to customary closing conditions, including regulatory approvals in various jurisdictions and approval by Aberdeen shareholders and is expected to close in the second quarter of 2009.
Credit Suisse said that, in Switzerland, it will maintain its asset management franchise while the management of a small number of Swiss-domiciled funds will transfer to Aberdeen. Credit Suisse will continue to operate its GI business in Brazil and through its various joint ventures across the globe.
In connection with the transaction, Credit Suisse expects a non-cash charge from the goodwill related to the operations being sold of approximately
CHF600 million. Credit Suisse’s stake in Aberdeen is subject to a purchase price adjustment which could result in Credit Suisse owning a stake of less than 24.9%.
Rob Shafir, CEO of Credit Suisse’s asset management division, said: We believe this transaction offers our clients a compelling opportunity, providing them with access to an enhanced suite of investment products provided by a premier manager that has historically had strong performance across many asset classes.
