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RBS to sell fund mgmt assets stake for 84.7 mn pounds

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Press Trust of India London
Last Updated : Jan 21 2013 | 1:24 AM IST

The Royal Bank of Scotland (RBS) will sell part of fund management assets to Aberdeen Asset Management Plc for an estimated 84.7 million pounds.

The banking major, which has been battered by the financial meltdown, is selling assets worldwide as part of its restructuring efforts.

RBS today said it has inked an agreement with global asset manager Aberdeen Asset Management for the sale of certain fund management assets and contracts of RBS Asset Management and RBS Asset Management Holdings.

As part of the pact, both companies would also enter into a distribution agreement for certain products between Aberdeen and RBS Wealth Management.

"The business will be sold for a total consideration of 84.7 million pounds," RBS said in a statement.

Subject to regulatory approvals, the divestment is expected to be completed in the first quarter of 2010.

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"The sale encompasses the Investment Strategies (funds of funds) division of RBS Asset Management which was established in 1998," the statement noted. This unit had assets under management worth 13.5 billion pounds as on September 30, 2009.

RBS Group Chief Financial Officer Bruce Van Saun said the transaction is another step in restructuring the firm around its core customer franchises.

The British government has over 80 per cent stake in RBS, after the entity was bailed out in the wake of the global financial crisis.

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First Published: Jan 08 2010 | 8:01 PM IST

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