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A 100% stake would be 1034mil and based on 24bil FUM, Keppel Corp is paying 1034mil/24bil = 4.3% of FUM. So at least, Keppel hasn't bought expensive.
From Q&A, the funds will exist for 9~11years, so they are not perpetual. But if the track record is good, future funds will be bigger than previous (as from ppt slide 6). The devil will probably be in the execution like getting the team/principals integrated to Keppel as the parent. So it is clever of Keppel to go in with a 50% stake first and a mixture of equity/cash.
Keppel accelerates transformation with pivotal proposed acquisition of leading European asset manager Aermont Capital
The consideration of up to S$517 million2 for the initial 50% stake in Aermont, which can be funded through a combination of cash and treasury shares acquired through Keppel’s earlier share buyback programme, implies an attractive valuation of c.13x EV/EBITDA
Expands Keppel’s funds under management (FUM) by S$24 billion1 post-acquisition, with further upside potential from co-creating new fund products; Initial focus will be to maintain and support Aermont’s platform, and collectively harness growth opportunities through joint funds.
Media Release: https://links.sgx.com/FileOpen/MREL_Kepp...eID=779494
PPT: https://links.sgx.com/FileOpen/Presentat...eID=779495
Q&A: https://links.sgx.com/FileOpen/TRSCR_Kep...eID=779567
From Q&A, the funds will exist for 9~11years, so they are not perpetual. But if the track record is good, future funds will be bigger than previous (as from ppt slide 6). The devil will probably be in the execution like getting the team/principals integrated to Keppel as the parent. So it is clever of Keppel to go in with a 50% stake first and a mixture of equity/cash.
Keppel accelerates transformation with pivotal proposed acquisition of leading European asset manager Aermont Capital
The consideration of up to S$517 million2 for the initial 50% stake in Aermont, which can be funded through a combination of cash and treasury shares acquired through Keppel’s earlier share buyback programme, implies an attractive valuation of c.13x EV/EBITDA
Expands Keppel’s funds under management (FUM) by S$24 billion1 post-acquisition, with further upside potential from co-creating new fund products; Initial focus will be to maintain and support Aermont’s platform, and collectively harness growth opportunities through joint funds.
Media Release: https://links.sgx.com/FileOpen/MREL_Kepp...eID=779494
PPT: https://links.sgx.com/FileOpen/Presentat...eID=779495
Q&A: https://links.sgx.com/FileOpen/TRSCR_Kep...eID=779567