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FOR IMMEDIATE RELEASE

 

Integrated Asset Management plc
Sale of fund of hedge fund business

 

Integrated Asset Management plc (AIM: IAM) ('Integrated' or 'the Company'), the AIM listed alternative investment group, today announces that it has signed a conditional agreement to sell the majority of its fund of hedge funds business to Sal. Oppenheim (France), ('Sal. Oppenheim (France)') the Paris based wholly-owned subsidiary of Sal. Oppenheim jr & Cie S.C.A ('Sal. Oppenheim'), for a combined consideration of approximately €3.5 million in cash and the cancellation of Sal. Oppenheim's entire share interest in Integrated of 11,496,111 shares (representing approximately 27.1% of the current outstanding shares). 

 €2 million will be payable in cash immediately upon completion of the disposal with a further payment of approximately €1.5 million to be paid in the form of a cash dividend from Altigefi to the Company. The scale of the dividend paid by Altigefi will be determined by the excess of cash reserves in Altigefi over regulatory capital at the time of completion.

Under the terms agreed, Integrated will sell its 51% interest in Altigefi S.A., its Paris-based Fund of Hedge Fund manager, to Sal. Oppenheim (France), which already owns the remaining 49% of the equity.  As part of the transaction, Integrated will also transfer the management agreements relating to five of its other funds to Sal. Oppenheim (France). Unaudited management accounts as at 31 December 2008 indicated that the combined assets under management of funds managed by Altigefi and the other five funds was $800 million.

The transaction does not impact Integrated's brokerage operations in Milan which will continue to operate as usual.

The fund of hedge funds business as a whole reported audited revenues of £7.65 million, audited profits after taxation of £0.51 million, net assets of £24.28 million and assets under management of $2,896 million in the year ended 31 December 2007. In the 6 months ended 30 June 2008 the fund of hedge funds business reported unaudited revenues of £6.44 million, an unaudited loss after taxation of £0.93 million, unaudited net assets of £24.42 million and assets under management of $2,402 million. 

Altigefi reported audited revenues of €8.19 million, audited profits after taxation of €1.50 million and audited net assets of €3.29 million in the year ended 31 December 2007. The five other funds to be transferred as part of the transaction were managed by other subsidiaries of the Company and their financial performance is not disclosed separately for the period ended 31 December 2007.

 The Board will use the proceeds of the disposal for general corporate purposes and this may potentially include acquisitions.

 The transaction is subject to the usual closing conditions including the receipt of regulatory approvals. As Sal. Oppenheim is a related party for the purposes of the AIM Rules for Companies, an Independent Committee of the Board has been formed to approve the terms of the transaction. The Independent Directors of the Company (being the Directors of the Company excluding Detlef Bierbaum and Christopher Freiherr von Oppenheim) who have been advised by Noble & Company Limited, consider the disposal to be fair and reasonable so far as the shareholders of IAM are concerned. In providing advice to the Independent Directors, Noble & Company Limited has taken into account the commercial assessment of the Independent Directors. Emanuel Arbib, CEO of Integrated, commented: 

 'In response to the unprecedentedly challenging market conditions of the past nine months, we have structured this deal with Sal. Oppenheim to benefit both our funds' investors and the Company's shareholders.  

 Once the transaction is completed, Integrated, with a strong and liquid balance sheet, will be well positioned to consider opportunities that are available in today's marketplace.'

 A circular will shortly be sent to shareholders providing full details of the transaction seeking their approval for the transaction, the cancellation and buyback of the shares and will include a notice of extraordinary general meeting. Shareholder approval is required as the disposal is a major disposal for the purposes of the AIM Rules for Companies.

 

 

Ends

For further details please contact:

Emanuel Arbib, Chief Executive Officer, Integrated Asset Management plc
Tel: +44 20 7514 9200
Fax: +44 20 7514 9202
arbib@integratedam.com

 

Weber Shandwick Financial
Steve McCool / Stewart Harris
Tel: +44 (0)20 7067 0700
sjharris@webershandwick.com 

  

Noble & Company Limited
John Riddell, Director
Tel: +44 (0)20 7763 2200
john.riddell@noblegp.com

 

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Note to Editors: Integrated Asset Management plc is an alternative investment group listed on the AIM market of the London Stock Exchange under the symbol IAM. Integrated Asset Management's core businesses are innovative fund management, alternative investment products and institutional brokerage services for equity and fixed income. www.integratedam.com

 

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