BMO Financial Group to Acquire F&C Asset Management plc
TORONTO, ONTARIO and LONDON, UNITED KINGDOM--(Marketwired - Jan. 28, 2014) -
- F&C is a diversified U.K.-based investment manager with a strong brand and almost 150-year history
- Consistent with BMO's stated intention of growing its wealth management business and demonstrates BMO's commitment to the asset management business
- BMO Global Asset Management's scale, product set and distribution capabilities will be enhanced; pro forma combined AUM of F&C and BMO Global Asset Management is approximately
US$2691 billion (£162 billion)
- Complementary distribution and limited product overlap expected to drive future revenue growth
- The acquisition, valued at C$1.3 billion (£708 million), is modestly accretive2 to earnings per share in the first year, and has an internal rate of return of approximately
15%
- BMO's capital ratios will continue to be strong following closing of the cash acquisition
- Established in 1817 as Bank of Montreal, BMO Financial Group is Canada's first bank and has been operating continuously in the U.K. since 1870
Editors Note: There is a photo accompanying this press release.
Bank of Montreal (TSX:BMO)(NYSE:BMO) and F&C Asset Management plc (LSE:FCAM) today announced that an agreement has been reached on the terms of a recommended cash acquisition by which the entire issued and to be issued ordinary share capital of F&C will be acquired by BMO Global Asset Management (Europe) Limited, a wholly-owned subsidiary of Bank of Montreal.
Under the terms of the acquisition, F&C shareholders will be entitled to receive 120 pence in cash for each F&C share held. This represents a premium of approximately 28% to the closing price of F&C shares as at January 24, 2014 and values the issued share capital of F&C at approximately £708 million (C$1.3 billion). The acquisition is intended to be implemented by way of a court-approved arrangement and formal documentation will be sent to F&C shareholders within 28 days of this announcement. F&C shareholders will be entitled to receive a normal course dividend of 2 pence per share for the financial year ended December 31, 2013. On January 28, 2014 the board of directors of F&C resolved to pay the dividend on the earlier of May 20, 2014 or the date when the cash consideration is paid to F&C shareholders on F&C's register of members at the close of business on April 4, 2014.