LONDON (Alliance News) - Investment firm Alliance Trust PLC said Monday that it has sold unit Alliance Trust Savings, to rival investment platform operator Interactive Investor for GBP40 million as part of a strategy to focus on the company's global equity portfolio.
"The board is pleased to announce the sale of ATS to Interactive Investor. The two businesses are highly complementary and ATS customers, many of whom are Alliance Trust shareholders, will benefit from Interactive Investor's similar low flat-fee structure, as well as its increased scale and focus. A key consideration for the board was a commitment to maintaining ATS's presence in Scotland. We are therefore very pleased that Interactive Investor plans to invest in ATS's Dundee operating centre." said Chairman Robert Smith.
Proceeds from the sale will be invested by Alliance Trust into its global equity portfolio, managed by Willis Towers Watson.
As June 30, Alliance Trust Savings had a fair value of GBP38 million and its Dundee, Scotland, office building was valued at GBP4.9 million. Alliance Trust Savings represents 1.3% of the Alliance Trust portfolio.
Earlier in October, Alliance Trust agreed the sale of some non-core holdings in private equity assets to asset manager PineBridge Investments. The holdings being sold accounted for less than 3% of Alliance Trust's total investment portfolio at the end of the half in June.
Shares in Alliance Trust were up 0.3% at 729.45 pence each.
