- Virgin Money agreed to buy abrdn’s 50% stake in Virgin Money Investment
Virgin Money agreed to buy Abrdn’s 50 per cent stake in their joint venture, Virgin Money Investments, in a £20m deal.
The fee means the FTSE 250-listed asset manager has lost more than half the value of his investment in Virgin Money Investments made just four years ago.
Aberdeen Standard Investments, as it was previously known, bought a 50 per cent stake in the company for £40m plus capital adjustments of £10m, for a total sum of £50m, in 2019. .
Deal: Virgin Money agreed to buy abrdn’s 50% stake in their joint venture, Virgin Money Investments
On Wednesday, Virgin Money said the new deal followed the launch of a new digital platform last year, followed by a new pensions offering.
In December, Virgin Money Investments had around £3.7bn in assets under management and more than 150,000 customers, according to Virgin Money.
Virgin Money wants to double Virgin Money Investments’ assets under management in the next five years.
Virgin Money Investments staff will move to Virgin Money, with “no anticipated job losses”.
Virgin Money director Allegra Patrizi said: “Taking full control of Virgin Money Investments will mean we will be able to bring together the investment and pensions business with our deposits, mortgages, credit cards and daily banking operations, allowing us to help that more clients feel safe to invest. .’
While the bank will take full ownership, Abrdn will continue to provide investment advice to Virgin Money Investments.
Under the terms of the deal, which is subject to customary approvals, Virgin Money will acquire 50 per cent of Virgin Money Unit Trust Managers Limited, currently owned by abrdn, for a cash payment of £20 million, fully funded by the existing capital of Virgin Money. resources.
Virgin Money added: ‘The purchase will allow Virgin Money and abrdn to focus on their respective strengths; Virgin Money’s broad appeal and distribution, using brilliant digital propositions and attractive customer rewards, and abrdn’s strength in asset management.
virgin money stocks rose 0.86 per cent or 1.35 pence to 157.95 pence on Wednesday, having fallen more than 14 per cent in the last year.
abrdn actions rose 1.98 per cent or 3.15 pence to 162.05 pence on Wednesday, having fallen more than 24 per cent in the last year.