Statement re New European Equity Fund Managemen...
Not for release, publication, transmission or distribution directly or
indirectly in or into the United States, Canada, Australia, Japan, New Zealand,
the Republic of South Africa or the Republic of Ireland.
1 February 2006
Stock Exchange Announcement
LIONTRUST ASSET MANAGEMENT PLC
New European Equity Fund Management Team
Liontrust Asset Management PLC ('Liontrust') is pleased to announce that Gary
West and James Inglis-Jones will be joining Liontrust in August 2006 jointly to
develop a European equity investment process. Liontrust intends to launch a
number of collective investment vehicles that will adopt this new investment
process, including alternative investment funds, authorised unit trusts, and
offshore funds. In addition, Liontrust will offer the European equity
investment process to the institutional market via segregated accounts and
pooled pension funds. Gary West and James Inglis-Jones previously held senior
positions at JP Morgan Fleming in the European investment division, of which
Gary was co-head until his departure. They are currently with Polar Capital
where they established a European market neutral product.
It is intended that European Equity fund management services will be provided
to Liontrust managed collective investment vehicles and segregated accounts by
a new group company, Liontrust European Investment Services Limited ('LEIS').
It is intended that Liontrust will own 51% of the equity of LEIS, with the
balance being acquired by Gary West, James Inglis-Jones, Jeremy Lang and
William Pattisson. The investments by Jeremy Lang and William Pattisson reflect
the roles that they will have in developing the European Equity business.
It is proposed that the terms of the investment in LEIS will include
arrangements whereby Liontrust will be granted an option to buy out the
minority shareholders in LEIS after five years (or in certain circumstances
sooner) on a valuation that is at a 25% discount to Liontrust's revenue
multiple at the time of the buy-out. The minority shareholders will be granted
an option to require Liontrust to buy out their shares in LEIS after five years
based on the same valuation formula. The consideration for the buy-out will be
satisfied at the election of Liontrust by the issue of new Liontrust shares or
a mixture of new Liontrust shares and cash. Any Liontrust shares issued as
consideration will be subject to appropriate lock-up arrangements.
The arrangements relating to LEIS have been agreed in principle, but are all
subject to contract and a further announcement will be made in due course.
For further information please contact:
Liontrust Asset Management PLC:
Nigel Legge Tel: 020-7412 1700
JP Morgan Cazenove Limited:
Richard Locke Tel: 020-7155 4706
JP Morgan Cazenove Limited, which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting as financial adviser to
Liontrust in relation to matters described in this announcement and is not
acting for any other person and will not be responsible to any other person for
providing the protections afforded to customers of JP Morgan Cazenove Limited
nor for advising them on the contents of this announcement.
The release, publication, transmission or distribution of this announcement in
jurisdictions other than the United Kingdom may be restricted by law and
therefore persons in such jurisdictions into which this announcement is
released, published, transmitted or distributed should inform themselves about
and observe such restrictions. Any failure to comply with the restrictions may
constitute a violation of the securities laws of any such jurisdiction.
ENDS
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