MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, June 19, 2000 UAM Sold in $2.2 Billion Deal After months of speculation about its future, its management, and its business model, United Asset Management Corporation (NYSE: UAM) found a buyer today. The acquiror is Old Mutual plc (LSE: OML) which is South Africa's largest life and pension company and is publically traded on the London stock exchange. The deal is a tender offer valued at $25 per share in cash set to commence in thirty days. This pegs the entire value of the equity of United Asset Management at approximately $1.46 billion. United Asset Management also carries a net debt of $769 million which will be assumed or refinanced in the transaction, according to the companies. The deal would close at the end of the year pending approval of the companies boards. "The transaction with Old Mutual is a win-win deal for United Asset Management's shareholders, affiliate firms and clients. We are very pleased to be able to deliver the value represented by the transaction with Old Mutual to our many long-term shareholders and to provide our affiliate firms with the opportunity to be a part of the dynamic Old Mutual group," James F. Orr III, United Asset Management's President and Chief Executive Officer said. "We believe this transaction has considerable benefits for both Old Mutual and the United Asset Management group of firms, their clients and professional staff. We expect there to be significant opportunities for cross selling and distribution of investment products into Old Mutual's client base. We believe this transaction will be a major step forward towards our aim of developing a focused and coordinated global asset management business. We anticipate that the transaction will be immediately accretive to Old Mutual's cash EPS," Mike Levett, Chairman and Chief Executive Officer of Old Mutual said. UAM managed more than $188 billion in assets on May 31, 2000. It reported revenues of $904 million and EBITDA (earnings before interest, taxes, depreciation and amortisation) of $306 million for the twelve months ended March 31, 2000. Barclays Bank plc, Royal Bank of Scotland Group and Citibank/Schroders Salomon Smith Barney arranged for financing for the deal. Credit Suisse First Boston and Chase Securities Inc. acted as financial advisors, and Weil, Gotshal & Manges LLP acted as legal counsel, to Old Mutual. Goldman, Sachs & Co. acted as financial advisor, and Wachtell, Lipton, Rosen & Katz acted as legal counsel to United Asset Management. UAM will become a wholly-owned subsidiary of Old Mutual which demutualized in July, 1999. UAM's assets will increase Old Mutual's assets under management to approximately $275 billion. Printed from: MFWire.com/story.asp?s=25839 Copyright 2000, InvestmentWires, Inc. All Rights Reserved |