National Sells County to AMVESCAP PLC - 20 December 2000
National Australia Bank announced today that it had sold its funds management subsidiary County Investment Management to AMVESCAP PLC, for a price of approximately A$110 million. This comprises a minimum price of A$90 million and an adjustment of approximately A$20 million based on revenue retention.
The National will also have the right to a fully franked dividend of A$2.66million and a return of capital, estimated at approximately A$13 million. This represents an expected return to the National of approximately A$125 million.
AMVESCAP is a major publicly-listed international investment management company with offices around the world and trades in Australia as INVESCO. County will become part of INVESCO Global, AMVESCAP's division responsible for retail and institutional investment management outside of the Americas.
Mr Frank Cicutto, Managing Director and CEO of the National said the deal represents a successful outcome for all parties.
"It is very pleasing that AMVESCAP, a world-class operator has recognised the inherent quality of the County business," Mr Cicutto said.
Mr. Charles Brady, Chairman and Chief Executive Officer of AMVESCAP said: "The purchase of County gives us the opportunity to fully participate in one of the world's fastest growing pension markets."
"This acquisition dramatically expands our position in Australia, consistent with our stated goal of building a leading position in all of the world's major financial markets," Mr Brady said.
The National announced the planned sale of County in August when the decision to divest was made as part of a strategic review of the bank's wealth management business, following its acquisition of MLC.
The transaction is subject to regulatory clearance by the Foreign Investment Review Board. Settlement is expected early in 2001 with final price adjustments to occur during the third quarter of the calendar year.
Mr Peter Scott, Executive General Manager Wealth Management for the National, said that the successful sale of County is part of the development of the National's global wealth management strategy.
"As we announced in August, both the National and County's management agreed that County's opportunities would be enhanced by linking up with a new strategic partner, preferably global, to help them build on the success they have enjoyed as one of Australia's leading investment managers over the past fifteen years."
"Today's announcement delivers on that commitment," Mr Scott said.
As part of the transition to the global INVESCO Group, County's Chief Executive Officer, Dr Nick Birrell, will be assuming the role of Regional Director for INVESCO in Asia, with responsibility for facilitating the Group's expansion plans in the region, including Australia.
Mr Michael Parsons, CEO of INVESCO in Australia, will be appointed Chief Executive of the combined County/INVESCO operation, with responsibility for integrating INVESCO's existing distribution-focused Australian operations into the broader manufacturing and distribution platform provided by County.
Both Dr Birrell and Mr Parsons will report to INVESCO's Asian Regional CEO, Mr Andrew Lo. The transition to the new leadership of the company is expected to take approximately three months.
County's founding Chief Executive and current Chairman, Mr Charles Macek, will be continuing in his current role until June 2001, when he will be retiring from the company. During this interim period Mr Macek will play a key role in facilitating the transition to the new ownership, capping off a distinguished career of leadership both of County and of Australia's broader investment management industry.
There are no other immediate staffing changes planned, with all of County's established investment and support teams and related business processes remaining in place.
Commenting on today's announcement, incoming CEO Michael Parsons said "INVESCO is delighted to be expanding our Australian presence by linking with such an established, quality investment management operation."
"We have recognised in County the essential qualities of investment skill, rigorous process, team stability and track record that are needed for sustained success in this increasingly specialised and competitive business. "
"We are confident that, by combining the complementary strengths of County's investment manufacturing with the global reach and resources of INVESCO, we will provide a compelling value proposition to Australian investors, both institutional and personal" Mr Parsons said.
Dr Nick Birrell said that he and his management team had been closely involved in the selection of INVESCO as the new strategic partner for County, and were enthusiastic about the transition to the new ownership.
"As part of the National, County has enjoyed strong growth in funds under management. As part of INVESCO, the company will for the first time share with its parent a dedicated focus on investment management as the sole driver of its corporate vision and value proposition to clients.
"County will have the opportunity to build on the best of its existing capabilities, while also introducing clients to broader investment opportunities available within the global group.
"And there will be tremendous scope to leverage the scale advantages of INVESCO's global network, allowing the business to adopt global best practice in key support areas such as distribution, administration and technology," Dr Birrell said.
National's Investments & Advisory division was responsible for the sale and retained the services of investment banking firm Putnam Lovell Securities in London and San Francisco.
About AMVESCAP/INVESCO
AMVESCAP is one of the world's largest independent investment managers, operating under the AIM and INVESCO brand names. AMVESCAP offers a broad array of investment products and services to institutions and individuals across all distribution channels.
Through its AIM and INVESCO subsidiaries, AMVESCAP has offices in 40 locations worldwide and manages assets on behalf of clients from more than 100 countries.
AMVESCAP is a publicly-traded holding company, listed on the London, New York, Paris and Toronto stock exchanges under the stock symbol AVZ. Total funds under management of the Group worldwide at 30 September 2000 were $US414.4 billion, with the most recently-reported revenue (for Q3, 2000) of $US660 million and earnings of $US237 million.
www.amvescap.com
www.invesco.com
www.invesco.com.au
Media Inquiries:
| Sydney: | Michael Parsons, CEO INVESCO Australia Asset Management Tel: 61 2 9252 7611 michael_parsons@syd.invesco.com |
| Atlanta: | Bill Hensel, Director of Media Relations Tel: 1 404 479 2886 bill_hensel@amvescap.com |
About County
County Investment Management Limited is a leading Australian institutional asset manager with approximately A$14.1 billion in assets under management at 30 November 2000.
The company, formed in 1985, presently ranks 14th among Australian investment managers in total assets under management, and 5th in wholesale assets under management. (Source: Rainmaker Information Services; figures quoted as at June 2000.)
County provides a diversified range of products across all major asset classes to broad client base including corporate and industry superannuation (pension) funds, master trusts, public authorities, charities and individuals.
County is headquartered in Melbourne and also has a presence in Sydney. Since October 1997 it has been a wholly owned subsidiary of the National Australia Bank Limited. Prior to then it was a subsidiary of the National Westminster Bank Group. The company has been managed independently and maintained its independent identity since its inception 15 years ago.
County presently employs a total of 41 investment professionals and 10 marketing and client services professionals among a total of 110 staff. The staff is an experienced and cohesive group, with the average tenure of senior staff members being over 10 years. The founding Chief Executive, Charles
Macek, is currently Chairman, and the present Chief Executive, Nick Birrell, has been in this position since July 1995.
Media inquiries:
Paul Murphy,
Head of Corporate Affairs
+61-3-9611-3700 or +61-417-118-081
paul_murphy@county.com.au
National Australia Bank
National Australia Bank Limited is an international financial services group providing a comprehensive and integrated range of financial products and services across four continents and 15 countries. Globally, as at September 30, 2000, the National had:
- Total balance sheet assets of A$344 billion
- Over A$60 billion in assets under management and administration
- A$285 billion in assets under custody and administration
- A mortgage servicing portfolio in excess of A$350 billion
- More than 12 million customers
The National is the largest financial services institution listed on the Australian Stock Exchange and was the 22nd largest financial services company in the world by profitability and 34th by revenues, (Fortune 500, July 2000).
Media inquiries:
Julie McBeth Group Manager,
Business Media Relations
Tel: 61-3-8641-3270
Mobile: 61-418-992 485
julie_mcbeth@national.com.au