Acquisition

13 Oct 2005 07:30

Premier Asset Management PLC13 October 2005 The Board of Premier Asset Management plc (the "Company") is pleased to announcethat it has acquired the entire issued share capital of BFS Investments(Guernsey) Ltd from BFS Investment Group Ltd and entered into a contract for theacquisition of the business and certain assets of BFS Investments PLC(collectively "BFS"), completion of which is anticipated by the end of October2005. BFS Investment Group is an investment management company established in1985 that manages assets for private clients and investment trusts. In consideration for the acquisition referred to above, the Company has agreedto allot 1,296,817 shares in Premier Asset Management Plc (the "considerationshares") in respect of the Guernsey business and to pay a further cashconsideration of up to £221,400 in respect of the UK business which is subjectto certain performance conditions being met. Application has been made to AIMfor these consideration shares to be admitted to trading and admission isexpected to occur on the 14th October 2005. The consideration shares are subjectto a 12 month sale restriction provision and a further 12 month orderly marketprovision. As at the end of August 2005 BFS had £248m under management within fiveinvestment trusts and £82m under management and administration within theirprivate client business. Under the terms of the deal, Premier Fund Managers Ltdwill assume responsibility for the ongoing management of both the BFS investmenttrusts and private clients. Certain employees of BFS will transfer to Premierand provide continuity of management and the BFS administration centre willcontinue to operate from its offices in Aylesbury. Sufficient staff resources to operate the BFS ongoing business will be retainedby BFS and the deal strengthens BFS' financial position. Premier AssetManagement will not assume responsibility for BFS past regulatory obligations. During the 11 months to 31st August 2005, the assets being acquired as part ofthis transaction generated gross revenues of £3.29m Commenting on the transaction Mike O'Shea, Chief Executive of Premier said,"Over the last few years Premier has been establishing a reputation as a dynamicand innovative asset management business. The acquisition of the business of BFScontinues this process and takes the Company's assets under management to £1Bn.We are very pleased to welcome the clients of BFS to Premier and look forward toworking with them on an ongoing basis. The integration of the key fundmanagement and administrative personnel into our own highly regarded team, meansthat we are confident of providing an excellent level of service in bothinvestment management and administration going forward." Enquiries Mike O'Shea - Chief Executive OfficerPremier Asset Management01483 400 402 This information is provided by RNS The company news service from the London Stock Exchange