Aberdeen buys Edinburgh
Once the deal is done EFM’s money will be split between Aberdeen and New Star Asset Management.
Aberdeen, which has an institutional business in Australia, will take over Edinburgh's institutional funds and investment trusts for a net cost of just £3 million of its shares, while New Star will bag Edinburgh's retail unit trusts and its respected funds of funds operation.
It is unknown at this early stage what the sale means for people with money in funds managed by EFM, Aberdeen is buying the EFM for just £36 million in a share-only deal.
"The low price and share only offer reflects the difficulties Edinburgh has suffered of late including the recent defections of head of UK equities Robert Waugh and his colleague Peter Cockburn to rivals Scottish Widows Investment Partnership," First NZ Capital UK listed investment company specialist Peter Irwin says.
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