Aberdeen Asset Management said on Thursday it is in discussions with Lloyds Banking Group about a possible acquisition of SWIP, an asset manager with £146 bn in funds under management.
Aberdeen Asset Management said on Thursday it is in discussions with Lloyds Banking Group about a possible acquisition of SWIP, an asset manager with £146 bn in funds under management.
Aberdeen also confirmed the talks were focused on the possibility of a strategic partnership with Lloyds Banking Group itself.
SWIP (Scottish Widows Investment Partnership), a subsidiary of Scottish Widows insurance, manages over €10 bn in real estate assets and ranks number 33 in PropertyEU's Top Investors ranking based on European AUM in 2012.
It is thought that SWIP is worth around £450 mln (€540 mln).
According to reports by Sky News, Aberdeen faces competition from Macquarie, Royal Bank of Canada and Natixis, with a winning bidder expected to be announced within the next few weeks.
Aberdeen said an acquisition would be funded by the issuance of new Aberdeen shares to Lloyds, with additional deferred payments in cash.
Aberdeen added that it expects an acquisition of SWIP would be 'materially earnings per share enhancing', while it would also reinforce the asset manager's commitment to a progressive dividend policy and to return surplus capital to shareholders over time.
